While inflation is pushing some prices higher, gasoline prices are bucking the trend. The national average of regular gas is nine cents lower than a month ago and 37 cents a gallon cheaper than 12 months ago.
For the second straight week, GasBuddy reports the national average price of gasoline fell over the previous week, falling 5.3 cents compared to a week ago, and stands at $3.07 per gallon. That’s based on data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country.
“The national average price of gasoline has continued its decline over the last week, as expected, as oil prices have sunk due to Israel avoiding attacks on Iran’s oil infrastructure, and seasonal decreases in demand are pushing gasoline lower, as is normal for this time of year,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
With gas prices at their lowest level since January, DeHaan says the price of diesel has fallen to a three-year low.
“While many Americans may incorrectly credit the upcoming election for the declines, politicians have little influence over the strong seasonal forces that drive prices lower in autumn,” DeHaan said.
Weaker fuel demand
DeHaan credits weaker demand for keeping oil and gasoline prices low, though demand has picked up recently. While motorists drive less heading into winter, some areas of the economy may be slowing. Consumers struggling with inflation in other areas may also drive less.
The latest report from the Energy Information Administration (EIA) showed U.S. oil inventories has risen by 5.5 million barrels and the Strategic Petroleum Reserve increased by 800,000 barrels to 384.6 million barrels, nearly 10% higher than a year ago.
Refineries are putting out more product, as refinery utilization rose almost two percentage points to 89.5%.
In short, gasoline prices – which have cause so much consumer pain in the past – may provide some inflation relief heading into 2025.
