For the sixth consecutive week, it appears that the pain at the pump is continuing to ease, with nine states now boasting gas prices below $4 per gallon.
According to newly compiled data from GasBuddy, the nation’s average gas price is currently sitting at $4.33 per gallon, down a hefty 17.4 cents from just a week ago. Compared to last month, pump prices have plummeted 56.7 cents.
“Gas prices continue falling coast to coast, with the national average last week declining for the sixth straight week, or forty days in a row,” Patrick De Haan, head of petroleum analysis at GasBuddy, noted in a news release.
“The national average is now down an astounding 70 cents in that timeframe,” he added.
The states with gas prices below $4 are: Texas ($3.85); South Carolina ($3.86); Georgia ($3.88); Mississippi ($3.89); Alabama ($3.92); Tennessee ($3.93); Arkansas ($3.93); Louisiana ($3.94); and Oklahoma ($3.96).
De Haan was optimistic that prices could continue on their downward trend, potentially landing even more states on that list. “I have no reason yet to expect the decline won’t reach seven straight weeks, as gas stations still have plenty of room to decline as oil prices remain under $100 per barrel,” he said.
But he did caution that if “the tropics become more active, the decline could eventually reverse.”
“In addition, this week we’ll see GDP data for the second quarter, and if it’s better than expected, we may see oil rally, slowing the descent,” De Haan explained.
“Consumers appear to be taking the pressure off their wallets by fueling up less,” Andrew Gross, AAA spokesperson, said in a news release.
“And there’s reason to be cautiously optimistic that pump prices will continue to fall, particularly if the global price for oil does not spike. But the overall situation remains very volatile,” he added.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks rose by 3.5 million barrels to 228.4 million barrels, signaling that low demand led to growth in inventory last week.
“If gas demand remains low as stocks increase, alongside a continuing reduction in crude prices, drivers will likely continue to see pump prices decline,” AAA concluded.
Ethen Kim Lieser is a Washington state-based Finance and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.