During the month of June, gasoline prices fell almost every day from $3.67 per gallon to $3.48. This is the lowest start to any August since 2010 when prices were $2.72 per gallon, according to WEX Inc.
Prices in every state have been down for the past 30 days, with the exception of Idaho and Wyoming. They are up 4.3 cents per gallon and 1.6 cents per gallon, respectively, but they also should slide below $3.50 per gallon in the coming days, says WEX.
Experts predict that excluding any storms blowing through the Gulf Coast, gasoline prices should continue to fade for the remainder of the year. There are already a handful of stations with prices below $3 per gallon, but analysts believe motorists will see thousands below that threshold by the end of September.
Demand is down roughly 6% from its peak in 2007 — thanks to more efficient fleets, telecommuting and an increase in urban living, says WEX. Also, supplies are in good shape due to few refinery problems and a ramp up in domestic crude production.
While most experts agree the remainder of the year will see lower prices, there may be a late August/early September bump as supplies of summer grade fuel get low. However, once Sept. 15 arrives, refiners could switch to the easier-to-make winter fuel and prices should plunge as they typically do, according to WEX.
Meanwhile, diesel prices are at $3.83 per gallon and have been holding steady. Prices may see an uptick as the heating oil season gets closer and supplies are stressed. Additionally, a stronger economy could also put upward pressure on diesel.