It was a beautiful scene. Gas prices fell below $4 per gallon for the first time in months. The new average price for a gallon of regular gas now stands at $3.99, according to AAA. That number is down significantly from where we were just two months ago, when Gasoline prices hit record highs is $5.02 set on June 14th.
Since then, the price of gas has dropped steadily and we’re $1.03 off that level now. That’s a 21% drop in less than two months. Not too bad.
Diesel prices have also dropped significantly, but not quite as much as regular gasoline. A gallon of diesel will now set you back $5.08. That’s still a good change and much larger than the $3.29 you paid a year ago, but it’s far below the record high. That high of $5.82 was set on June 19. Like gasoline, diesel has fallen quite a bit since then. It has now dropped 74 cents a gallon in less than two months. We will definitely take it.
AAA reports that while gas prices are lower, it’s still not enough to get Americans back to the pump as they once did. However, that really might not be a bad thing for the price.
“Oil is the main ingredient in gasoline, so less expensive oil is useful in regulating pump prices,” said Andrew Gross, a spokesman for AAA. “Combine that with fewer drivers filling up gas, and you have a recipe for gas prices to continue to fall. Maybe the national average will drop below $4 this week. “
Gas demand fell from 9.25 million bpd to 8.54 million bpd last week, according to new data from the Energy Information Administration (EIA). The rate is 1.24 million bpd lower than last year and in line with demand at the end of July 2020, when COVID-19 restrictions were in place and fewer people were driving. In addition, according to the EIA, the total domestic gasoline supply increased slightly by 200,000 barrels to 225.3 million barrels. If gas demand remains low and supply continues to grow along with falling oil prices, drivers will likely continue to see pump prices fall.
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Let’s take a closer look at the highest and lowest gas prices across the country. Big news: since we last spoke, another state has taken over the top gas prices.
Here are the highest average gas prices in the country in order of highest prices for a typical gallon:
- Hawaii – $5.39 Regular Price | $5.62 Average | $5.86 Premium | $6.10 diesel
- California – $5.38 Regular Price | $5.60 Average | $5.75 Premium | $6.26 diesel
- Alaska – $4.95 Regular | $5.12 Average | $5.30 Premium | $5.49 Diesel
- Nevada – $4.94 Regular | $5.19 Middle | $5.39 Premium | $5.21 diesel
- Oregon – $4.88 Regular | $5.10 Middle | $5.32 Premium | $5.77 diesel
Below are the lowest average gas prices in the country in order of lowest prices per gallon of regular gasoline:
- Texas – $3.49 Regular | $3.88 Middle | $4.21 Premium | $4.57 diesel
- Arkansas – $3.53 Regular Price | $3.91 Average | $4.25 Premium | $4.73 diesel
- South Carolina – $3.54 Regular Price | $3.95 Average | $4.29 Premium | $4.74 diesel
- Tennessee – $3.55 Regular | $3.94 Middle | $4.30 Premium | $4.79 diesel
- Oklahoma – $3.56 Regular | $3.89 Middle | $4.14 Premium | $4.56 diesel
Ladies and gentlemen, we made it.
