WASHINGTON -- Motorists paid the lowest price at the pump for Independence Day travel since 2010, saving 90 cents per gallon compared to the 2014 holiday, said AAA.
The national average price for regular unleaded gasoline on July 6 was $2.77 per gallon, down fractions of a penny versus one week ago. The national average price remained relatively steady over the past 30 days, despite regional fluctuations in price due to refinery issues, and today’s average represents an increase of one cent per gallon versus one month ago. Pump prices remain considerably discounted year-over-year, with drivers saving 89 cents per gallon compared to this same date last year.
During July 2014, averages fell on all but one day during the month, for a total drop of 16 cents per gallon. Despite the decline in recent weeks, the direction of pump prices in the near term is less than certain, said AAA.
Consumer demand for gasoline typically climbs during July and August, and the ability of supply to keep pace with growing demand can directly impact the price at the pump. Additionally, Atlantic hurricanes or issues at refineries can affect retail averages; both are capable of limiting supply and putting upward pressure on prices for drivers. While these domestic factors could influence gas prices higher, the relatively low price of crude oil is expected to keep a ceiling on the price at the pump compared to recent years.
AAA still expects drivers to pay averages below $3 per gallon for the rest of the year, it said.
Pump prices west of the Rockies continue to lead the nation with the only state averages higher than $3 per gallon. For the second week in a row motorists in Alaska ($3.48) are paying the nation’s highest price for retail gasoline. The Last Frontier is followed by regional neighbors California ($3.44), Hawaii ($3.37), Nevada ($3.20) and Washington ($3.20) as the nation’s top five most expensive markets. South Carolina ($2.43) and Mississippi ($2.47) are posting the nation’s lowest averages, discounted by more than $1 per gallon from the market leader.
Weekly price comparisons reflect drivers in 36 states and Washington, D.C. experiencing savings at the pump. Of the 14 states where the price has moved higher over this same period, 12 states are posting premiums of two cents per gallon or less.
On the whole, the average price for retail gasoline has remained relatively stable, week-over-week, moving up or down three cents per gallon in 47 states and Washington, D.C. Three states located in the midcontinent region are outside of this trend: Ohio ( down 10 cents), Idaho (up 7 cents) and Michigan (up 6 cents)—the fluctuations in price are largely attributed to supply and demand remaining out of balance within the region following refinery issues in recent months.
Despite the national average remaining relatively stable over the past 30 days, the lingering effects of regional refinery issues continue to be reflected in monthly price comparisons at the state level. The price has climbed higher in 37 states and Washington, D.C., month-over-month, with the largest price movements in regions previously facing issues at major refineries. A total of seven states are posting double-digit increases over this period, led by Michigan (up 22 cents), Idaho (up 13 cents) and Washington (up 13 cents). On the other end of the spectrum, prices are down in 13 states versus one month ago. Prices in California (down 18 cents) and Nevada (down 7 cents) have fallen by more than one nickel per gallon over this same period due to the earlier resolution of refinery issues in California.
Nationwide, drivers are enjoying significant discounts in the price for retail gasoline versus this same date last year. Consumers in Connecticut (down $1.04) and Washington D.C. (down $1.01) are saving more than $1 per gallon at the pump, and drivers in the vast majority of states (45 and Washington, D.C.) are posting yearly discounts of more than 75 cents per gallon.
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