As summer fades away, cheaper gas prices may be here to stay

(September 8, 2020) Motorists saw plenty of savings at the pump from Memorial Day through Labor Day. The national gas price average during the unofficial start and stop to summer was $2.15 — the cheapest since 2004. Demand was decimated this summer, which ultimately meant increased supply and cheap gas prices. That trend continues, according to statistics by AAA.

In its latest report, the Energy Information Administration (EIA) reported that demand dropped from 9.16 million barrels a day to 8.79 barrels a day. While gasoline stocks dropped by 4.3 million barrels to 234.9 million barrels, total supply is 5.2 million bbl more than this time last year.

“Summer may be fading into the rearview mirror, but less expensive gas prices are not,” said Jeanette Casselano, AAA spokesperson. “Moving into fall we traditionally see a drop in demand and further savings at the pump. This year that means pump prices could possibly push even lower then we’ve already seen in 2020.”

On the week, the majority of state averages are cheaper by a few cents. A few states in the Mid-West did see more significant price drops ranging from a nickel to a dime. The small handful of states with increases saw a jump of just penny or two, with the exception of Florida (+6 cents).

At $2.21, today’s average is two cents less than last week, one penny more than last month and 35 cents cheaper than a year ago.

Quick Stats

    •     The nation’s top 10 largest weekly decreases: Ohio (-11 cents), Indiana (-9 cents), Kentucky (-6 cents), Michigan (-6 cents), Wisconsin (-5 cents), North Carolina (-4 cents), Illinois (-4 cents), South Carolina (-4 cents), Washington, D.C. (-3 cents) and Oklahoma (-3 cents).

    •    The nation’s top 10 least expensive markets: Mississippi ($1.88), Texas ($1.89), Oklahoma ($1.90), Louisiana ($1.91), Arkansas ($1.91), Missouri ($1.92), Alabama ($1.93), South Carolina ($1.96), Tennessee ($1.96) and Kansas ($2.00).