The upward trend for fuel prices has ceased, as fuel prices are currently down from last week.
Despite recent fluctuation in fuel prices, gasoline demand is still on track to set a new all-time high during the 2016 summer driving season.
According to a report from AAA, fuel prices have fallen over the past nine days, bringing the current national average to $2.33 per gallon. Crude oil prices have remained relatively lower than in recent years, which is contributing to the savings that drivers are experiencing at the pump.
The current national average has drivers saving a nickel per gallon on the week, while they are still paying five cents more per gallon on the month, following the recent steady price increases. However, despite prices being up on the month, drivers are still paying an average of 46 cents less per gallon than on this date last year. According to AAA, these lower fuel prices are expected to continue as supply appears to be more than capable of keeping pace with growing demand.
The summer driving months typically bring about higher prices at the pump, as supply generally lags behind the increased demand; however, this year, AAA has reported that supply appears to be meeting the growing demand, resulting in prices that have held relatively steady and markedly lower than last year. Recent data from the U.S. EIA suggests that, on the whole, refineries are keeping pace with growing demand, and the data has revealed that the market is currently well supplied.
In addition, AAA reported that the expectations of increased production from Western Canada and the U.S. are expected to keep global crude oil prices relatively low. Prices at the pump are still at some of their lowest levels since 2005, and these savings are expected to persist, barring any major disruptions in production or supply.
According to AAA, California and Hawaii are reporting the highest fuel averages in the nation at $2.86 and $2.75, respectively, while South Carolina and Mississippi care boasting the nation’s lowest averages at $2.03 and $2.07, respectively.