GAITHERSBURG, Md. -- Retail gasoline prices just saw their biggest weekly drop of 2015.
According to a blog post by Patrick DeHaan, senior petroleum analyst at GasBuddy, the national average retail gasoline price dropped almost 13 cents per gallon (CPG) to rest at $2.47 per gallon. This would mark the greatest weekly price decline of 2015 to date.
National retail gasoline prices are now 20 CPG lower than a month ago, DeHaan said, and down 96 CPG from a year ago.
DeHaan projects price pressure on crude prices as refineries begin a maintenance period and a slowdown in processing oil, which will build supply. Gaithersburg, Md.-based GasBuddy expects that by Christmas, consumers will be paying less than $2 per gallon at up to one-half of gas stations in the United States. About 5,000 station—or 5% of the total—are currently at that price point.
Separately, AAA reported that the national average has declined for 14 consecutive days, or a 20-CPG drop. The $2.47-per-gallon average is down 18 CPG from a month ago.
Pressuring prices: a 23% drop in oil prices on news of a continuing economic slowdown in China, and hopes for a nuclear deal with Iran that could result in eased sanctions, opening up the market to the Middle East nation’s crude.
Also, a run-up in gas prices in the Midwest because of a shutdown in BP’s Whiting, Ind., refinery has ended as the facility returns to service. Retail gas prices in the Great Lakes region have swooned since then, with prices in Michigan down almost 31 CPG over the past week, GasBuddy said. Ohio saw a 30-CPG decline, with Indiana prices down 29 CPG, Illinois off 26 CPG and Wisconsin prices declining 23 CPG.
The Western region continues to have the highest retail gasoline prices, led by California, which is averaging $3.35 per gallon. Nevada ranks second at an average of $3.13 per gallon, according to GasBuddy, and Washington follows at $2.94 per gallon. The remaining top 10 states include Idaho, Oregon, Utah, Alaska, Hawaii, Colorado and Illinois.
The lowest retail price averages were mainly in the Southeast, led by South Carolina ($2.01 per gallon), Mississippi ($2.07), Alabama ($2.07), Louisiana ($2.15) and Tennessee ($2.15).
Average retail gasoline prices are more than $1.00 per gallon lower than a year ago in one-half of the states. Hawaii has seen the biggest yearly decline—down $1.19 per gallon—and California had the smallest annual price decline at 49 CPG.
Click here to view the full GasBuddy blog report.
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