BOSTON -- The national gasoline average has steadily ticked up for the past couple of weeks, but expect much lower prices by Halloween.
That’s the price forecast from Boston-based GasBuddy, which reported a national average of $2.21 per gallon on Aug. 29, after 14 consecutive days of increases. This represents a 7-cent-per-gallon (CPG) increase from the week prior.
Meanwhile, the national average was only 28 CPG lower than a year ago. Only a few weeks ago, the year-over-year discount was nearly double that figure.
Patrick DeHaan, senior petroleum analyst for GasBuddy, cited a late-summer rally in the oil markets for the price increases, spooked by hints from some members of the Organization of the Petroleum Exporting Countries (OPEC) that they may agree to an output freeze. That said, consumers still are enjoying the lowest-priced gasoline for the summer in a decade.
Gasoline retail averages rose in 46 states during the past week. Florida led with a 13-CPG jump, followed by Tennessee and Kansas with a 9-CPG increase, and Georgia and Missouri with an 8-CPG rise in their averages. The West Coast states of Hawaii ($2.71), California ($2.67) and Washington ($2.61) had the highest averages at the start of this week.
The averages in only four states—Indiana, Alaska, Kentucky and Utah—declined week over week, according to GasBuddy. The lowest averages were in South Carolina at $1.94 per gallon, Alabama ($1.97) and Mississippi ($1.99).
While gasoline prices may continue to tick up this week, there are signs that averages will begin to drop into fall. The upcoming Labor Day weekend will conclude the busy summer driving season, and usher in reduced fuel demand. Also, Environmental Protection Agency regulations requiring more expensive summer fuel blends are set to end on Sept. 15 for much of the country.
"While some tropical disturbances may lead gas prices to continue rising slightly ahead of Labor Day weekend, relief will be felt across every single state later as gasoline demand drops and cheaper winter gas begins flowing in mid-September," DeHaan said.
In fact, while only three states have retail averages below $2 per gallon, this figure should grow greatly over the next couple of months. GasBuddy is currently forecasting a national average of $1.99 per gallon by Halloween.
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