WASHINGTON & BOSTON -- The national retail average for regular gasoline at the start of this week was at its lowest price for the date since 2004, despite a pause in the nearly daily price declines since the start of the year.
According to Washington-based AAA, the national average rose 1 cent per gallon (CPG) to reach $1.71 per gallon. This is after it fell a total of 29 CPG over 41 of the past 47 days. From a monthly perspective, the average is still down 13 CPG and off 58 CPG from a year ago.
AAA expects gas prices to rise as spring refinery maintenance nears, although they should stay low relative to recent years because of ample gasoline supply and low crude prices; 45 states are paying a retail average of less than $2 per gallon, and 36 states are seeing an average below $1.75. Missouri and Oklahoma are enjoying the lowest price at $1.46 per gallon.
The highest averages at the start of this week were in the western United States, including Hawaii at $2.57 per gallon, California ($2.32), Alaska ($2.22), Washington ($2.02) and Nevada ($2).
Twenty states saw their retail averages increase week over week. The largest weekly increases were in the Midwest, where refinery production cuts in response to burgeoning gasoline supplies and low oil prices have pressured retail prices. These include Minnesota, where the average rose 18 CPG, Michigan (15 CPG) and Indiana (14 CPG). AAA warned that averages in this region may still move upward under further production cuts.
Retail averages fell in 30 states and Washington, D.C., week over week, with the biggest drops in Arizona, California and Nevada, all down 9 CPG.
GasBuddy, Boston, reported that the drop in California was the result of a “fire sale” of gasoline, as refiners tried to clear through winter blends as they shift production to summer blends. It noted that the national average has only increased for four days out of the month of February.
Diesel prices also have been on a downward trend, beginning this week with a national average of $1.978 per gallon, according to GasBuddy. This is nearly 90 CPG lower than a year ago, compared to gasoline’s 59-CPG discount. Regular gasoline was selling for less than $1.50 per gallon at 22.7% of stations, and at more than $2 per gallon at 31.7% of sites. GasBuddy noted that the gap between the retail average at the highest 5% and lowest 5% of gas stations has narrowed to $1.12 per gallon, partly in response to declining prices on the West Coast and price increases in the Midwest.
The retail average seems to have hit its bottom, with seasonal price increases looming thanks to a move toward summer-blend fuels and higher demand. “The weeks ahead will more likely be replaced with higher gasoline prices,” GasBuddy reported. “Refinery utilization bounced back last week, suggesting that maintenance has not yet started en masse.”
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.