The national average gasoline price fell five cents to $2.85 per gallon for the week. Gas prices have been consistently declining since Memorial Day and have fallen 12 cents in the past month. For the week, 49 states saw a decline in their average price, according to AAA's June 25 update.
Gasoline prices remain 58 cents higher than a year ago, even as drivers in Indiana and Michigan saw their pump prices decline by 14 cents and 13 cents respectively on the week.
The week ahead could bring even lower fuel prices following the announcement by OPEC (Organization of the Petroleum Exporting Countries) that the oil cartel will increase production by 1 million barrels per day in the second half of the year. The increase may be revised lower to 600,000 barrels per day because Libya, Venezuela, and Iran may not be able to meet the quota increase.
"The OPEC production increase will help to offset concerns of shrinking global supply caused by high global demand this year," said Jeanette Casselano, AAA spokesperson. "For drivers in the U.S., pump prices likely will not see an impact immediately. Changes, and most likely not dramatic ones, are anticipated to hit pump prices late summer or early fall."
States with the lowest average gasoline price now include South Carolina ($2.50), Mississippi ($2.54), Alabama ($2.54), Oklahoma ($2.56), Louisiana ($2.57), Arkansas ($2.60), Tennessee ($2.60), Virginia ($2.61), Ohio ($2.61), and Missouri ($2.63).
States with other significant weekly price declines include Ohio (nine cents), Illinois (eight cents), Kentucky (seven cents), and Missouri (six cents).
Meanwhile, the average price of diesel fell 2.8 cents to $3.216 per gallon, which was 75.1 cents higher than a year ago, according to the U.S. Energy Information Administration.
Originally posted on Automotive Fleet