Gas Prices are Falling, but Will They Keep Going Down?

From the AAA Weekly Fuel Report

California’s average for a gallon of regular gasoline dropped seven cents in the past week to $6.07. The national average for a gallon of regular gasoline is also down, 12 cents from last week at $4.42. Crude oil prices have been going down this week amid reports of peace talks with Iran. But the fragile situation could cause oil prices to spike again if a ceasefire deal isn’t reached.

“Although prices have dropped after Memorial Day demand passed, gas prices remain the highest they’ve been in four years,” said AAA Mountain West Group spokesperson Doug Johnson. “They’ll likely remain elevated as the busy summer driving season gets underway.”

Fuel Prices Around the State:

San Francisco: $6.25
Oakland: $6.16
San Jose: $6.10
Sacramento: $6.05
Fresno: $6.03
Stockton: $5.93
Modesto: $5.93

According to new data from the Energy Information Administration (EIA), gasoline demand increased last week from 8.76 million b/d to 9.25 million. Total domestic gasoline supply decreased from 214.2 million barrels to 211.6 million. Gasoline production increased last week, averaging 9.9 million barrels per day.

Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI fell $5.21 to settle at $88.68 a barrel. The EIA reports crude oil inventories decreased by 3.3 million barrels from the previous week. At 441.7 million barrels, U.S. crude oil inventories are about 2% below the five-year average for this time of year.

EV Charging

The national average per kilowatt hour of electricity at a public EV charging station remained the same this past week at 41 cents. In California, the average is 46 cents.

State Stats

Gas

The nation’s top 10 most expensive gasoline markets are California ($6.07), Washington ($5.74), Hawaii ($5.65), Oregon ($5.27), Alaska ($5.26), Nevada ($5.21), Illinois ($4.86), Arizona ($4.74), Idaho ($4.65), and Washington, DC ($4.64).

The nation’s top 10 least expensive gasoline markets are Indiana ($3.81), Texas ($3.92), Georgia ($3.93), Mississippi ($3.93), Oklahoma ($3.93), Louisiana ($3.94), Kansas ($4.00), Arkansas ($4.01), South Carolina ($4.02), and Alabama ($4.05).

Electric

The nation’s top 10 most expensive states for public charging per kilowatt hour are West Virginia (52 cents), Hawaii (51 cents), Alaska (47 cents), Louisiana (46 cents), New Hampshire (46 cents), California (46 cents), Illinois (45 cents), New Jersey (44 cents), Arkansas (44 cents), and Arizona (43 cents).

The nation’s top 10 least expensive states for public charging per kilowatt hour are Kansas (29 cents), Missouri (32 cents), Maryland (33 cents), Utah (33 cents), Iowa (34 cents), Nebraska (34 cents), South Dakota (34 cents), Vermont (35 cents), New Mexico (36 cents), and Minnesota (37 cents).

AAA Shares Tips to Help Drivers Save on Gas

Save on gas. Use the AAA Mobile App to find the cheapest gas stations along your route, plan your trip, request roadside assistance, and more. AAA Members can save 30¢ per gallon on your first fill-up at participating stations when you join Shell Fuel Rewards®. All AAA Shell Fuel Rewards® Members save 5¢ per gallon on their fill-ups of up to 20 gallons at participating stations with complimentary Gold Status.

Avoid Speeding: Fuel economy peaks at around 50 mph on most cars, then drops off as speeds increase. Driving the recommended speed limit can increase fuel economy between 7 and 14 percent.

Regular vs. Premium: Pay close attention to the words “recommended” and “required.” If regular gas is recommended for your vehicle, that’s all you need. Choosing premium when your car doesn’t require it will only cost you money and doesn’t improve fuel economy.

Remove unnecessary weight from your vehicle (e.g., trunk, cargo area, etc.) as weight increases the amount of effort it takes to move the vehicle.

Avoid Excessive Idling: When idling, car engines use up to one-half gallons of fuel per hour. Warm engines take about 10 seconds worth of fuel to restart. Shut off your engine when stopped for more than a minute and if it’s safe to do so.

Check Tire Pressure and Align Tires: Maintaining proper tire pressure reduces your tire’s friction with the road. Less friction means less energy is needed to move, resulting in using less gas. Proper inflation can improve gas mileage by 0.6 percent on average.

Drivers can find current gas and electric charging prices along their route using the AAA Mobile App, now available on CarPlay. Find current fuel prices at gasprices.aaa.com. Find local news releases at mwg.aaa.com/news/press-release.