Topline
The national average price for a gallon of gasoline dipped below $3.50 for the first time since March on Wednesday, a welcome sign for motorists at the pump even as demand ticks up heading into the summer, and as inflation remains a key talking point for the November election.
The national average price for a gallon of gasoline dipped below $3.50 for the first time since ... [+]
Key Facts
The national average gas price dropped to $3.49 per gallon on Wednesday, according to data from GasBuddy, putting it five cents below the national average this time last year, and over $1.50 off the whopping $5 gallon price in June 2022, a record peak.
Prices have been falling steadily over the past month, with the exception of a Memorial Day weekend spike, when an estimated 38.4 million drivers hit the road on 50-plus-mile travel plans, according to AAA.
With the holiday weekend in the rearview mirror, Andrew Gross, a spokesperson for AAA, said he believes prices “will likely keep up this slow sag,” though he estimates an expectedly busy Atlantic hurricane season could throw another wrench in gas prices, if storms impact oil production in the Gulf of Mexico.
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Contra
Prices have been falling at a time of year motorists typically expect an increase at the pump, coinciding with a traditional spike in demand heading into the summer. That rise in demand has been no different this year, rising to over 9 million barrels per day as of last week, just shy of the 9.18 million barrels per day at the same time last year, according to the Energy Information Administration. One factor contributing to lower gas prices has been the global price of oil, which is refined into gasoline. Oil prices have been falling in recent weeks, as supplies remain stagnant, and after OPEC announced last week it will allow voluntary cuts from eight oil-heavy countries to be reversed this fall. The international benchmark Brent Crude dropped to a five-month low of $76 per barrel, and the national benchmark West Texas Intermediate has fallen below $74 per barrel for the first time since February.
Tangent
Drivers can find the cheapest gas in Mississippi, where a gallon averages just under $3, followed by Arkansas ($3.01), Oklahoma ($3.02), Texas ($3.05), Kansas ($3.08), Louisiana ($3.08), Tennessee ($3.10), Missouri ($3.13) and Alabama ($3.16), according to AAA. States on the West Coast, meanwhile, typically see higher prices through a combination of factors, including transportation costs and high state gas taxes. The most expensive state for gas as of Wednesday is California, with the average going for $5 per gallon, above Hawaii ($4.76), Arizona ($3.76), Washington ($4.47), Oregon ($4.21) and Nevada ($4.19).
