Despite international turmoil, gasoline prices have slowly dropped most of the summer. At $3.43 per gallon, the national average is almost 17 cents per gallon lower than a year ago, according to WEX Inc. Experts predict prices will continue to decline; many states will see prices below $3 per gallon in the coming weeks.
Domestic crude supplies are at their greatest level since 1986, and it is forecasted to grow substantially in the next few years, says WEX.
With new vehicle models getting better gas mileage, demand for gasoline is about 6% lower than during its peak in 2007, says WEX. Analysts see continued gains as older cars are replaced by newer models.
On Sept. 15, refiners switch to winter fuel, which is cheaper and easier to make than summer fuel. According to WEX, this typically causes a drop in fuel prices.
And so far, this hurricane season has had few storms threatening the refining sector.
Meanwhile, diesel prices are at $3.79 and are likely to hold steady, says WEX. With heating oil season on the horizon, most market watchers don’t anticipate the same kind of drops for diesel as they do for gasoline.