Gas Prices Keep Dropping

Gas prices across the United States have continued their downward trend as summer approaches.

According to the data from the American Automobile Association, the national average gasoline price has seen a decline, with states expected to see their averages dip below $3 per gallon in the coming weeks.

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The Context

AAA reported that the national average price for a gallon of regular unleaded gasoline was $3.49 on June 6, marking an eight-cent drop from the previous week and the largest weekly drop of the year.

This decline comes despite OPEC's decision to extend oil production cuts through 2025. The decrease in gas prices can be attributed to a combination of factors, including lower gasoline demand, increased supply, and falling oil costs​​.

What We Know

According to AAA spokesperson Andrew Gross, "This drop in pump prices appears to have some sticking power for now. More states should see their averages dip below $3 a gallon in the coming weeks."

Newsweek has contacted a representative of the AAA via email for further comment.

The Energy Information Administration (EIA) reported that gas demand dipped from 9.14 million barrels per day (b/d) to 8.94 million b/d last week, while total domestic gasoline stocks rose from 228.8 million barrels to 230.9 million barrels​​.

The Midwest experienced the most significant drop in gas prices over the past week, with an average decline of 11 cents per gallon. Meanwhile, New England saw the smallest decrease at four cents per gallon. EIA data shows that the average price of gasoline in the U.S. is now $3.51 per gallon, down six cents from the previous week​​.

The ten states with the lowest average gas prices as of June 5 include Mississippi ($2.99), Arkansas ($3.01), Oklahoma ($3.02), Texas ($3.04), Kansas ($3.07), Louisiana ($3.07), Tennessee ($3.09), Missouri ($3.12), South Carolina ($3.15), and Alabama ($3.16).

The West Coast continues to have the highest average prices, with California at $4.98 per gallon​​, Washington at $4.45, Oregon at $4.19, Nevada at $4.160, Arizona at $3.74. Hawaii also has a high gas price, at $4.76 per gallon.

What's Next

This trend in gas prices is expected to be beneficial to consumers as summer travel starts to pick up. As gasoline demand is expected to remain tepid with refineries operating at a high capacity, the conditions are set for continued declines in pump pricing.

Gross warned that prices might spike as hurricane season kicks off. "Forecasters predict it will be very active," he said in a AAA press release, "A storm impacting the Gulf Coast oil production and refining centers could push prices temporarily higher, so stay tuned."

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