(July 6, 2016) Pump prices have now fallen for 24 straight days and registered their lowest price for this past weekend's Independence Day holiday since 2005. Today’s national average price for regular unleaded gasoline is $2.27 per gallon, which represents a savings of three cents per gallon on the week and nine cents per gallon on the month, according to prices released today by AAA.

Year-over-year drivers continue to benefit from noticeable discounts at the price to refuel their vehicles and prices are down 50 cents per gallon versus this same date last year.

With a AAA-estimated record 43 million drivers hitting the road this Fourth of July holiday weekend, this year continues to see Americans traveling in record numbers. A rebounding economy and gas prices across the country that reflect substantial yearly savings are contributing to gasoline demand and vehicle miles traveled that are both on track to set all-time highs for 2016.



Higher demand puts upward pressure on prices, as evidenced this spring when prices increased on 84 of 104 days beginning at the end of February and jumped more than 65 cents during this span. As is often the case leading up to the changeover from winter- to summer-blend gasoline, this year’s increase was exacerbated by regional refinery issues that sent prices temporarily higher in some markets.

While prices may continue to slide through the month of July, further refinery issues, stronger than anticipated economic growth, geopolitical tensions overseas or hurricanes here at home that impact distribution and production all have the potential to reverse this trend and see prices again turn higher again.

Quick stats

   • The West Coast continues to post the nation’s highest prices at the pump, led by: California ($2.91), Hawaii ($2.82), Washington ($2.67), Alaska ($2.65) and Nevada ($2.57).

    • The nation’s least expensive markets are: South Carolina ($1.96), Mississippi ($2.02), Alabama ($2.05), Arkansas ($2.05) and Oklahoma ($2.05).

Oil market dynamics

Global oil prices continue to point lower thanks largely to indications of increased supply. This includes the recent return of production from the Canadian Oil Sands and reports of strong output from OPEC member countries. Adding to this news over the weekend were reports that June production by OPEC had reached multi-year highs. This includes an increase in production in Nigeria where production reportedly increase by 150,000 barrels per day during the month.

While these recent production reports have pointed to increased production the region remains volatile and an incident with the potential to impact production and send prices higher is always a consideration.