Americans Now Paying Cheapest Gas Prices of the Year
Indianapolis, IN - Nov 5, 2013 - Americans are now paying the cheapest gas prices of the year following a 12-cent-per-gallon (3.5 percent) decline in October. In fact, today's national average for self-serve regular unleaded is $3.240; 23 cents less than what it was one year ago.
Indiana's statewide average today is $3.238.
Abundant supplies, declining demand, falling oil prices and the industry-wide conversion to winter-blend gasoline are all being recognized as positive variables that are combining to push gas prices lower.
Looking Back at October...
- The average price of gas in October was $3.34 per gallon, which was the cheapest for the month since 2010. The average in October 2012 was $3.71 per gallon and it was $3.43 per gallon in 2011. The monthly average also declined from September this year, when it was $3.51 per gallon.
- The national average price of gas has fallen 57 out of 64 days since Labor Day. Demand typically drops following Labor Day as the weather grows cooler.
- Gasoline supplies are about seven percent higher than they were one year ago.
- The lack of a major hurricane this year has helped refineries run relatively smoothly and maintain ample production. Many refineries also have increased capacity to take advantage of growing North American crude oil production to make more gasoline.
- Much of the country switched to using less expensive winter-bend gasoline in September and October. Winter-blend gasoline can cost as much as 10-15 cents per gallon less to produce than the equivalent summer fuel because it is not required to meet stricter air regulations.
- The national average price of gas began the year at $3.29 per gallon on January 1 and reached a peak of $3.79 per gallon on February 27, which was the earliest peak price on record.
- The price of West Texas Intermediate (WTI) crude oil recently dropped below $100 per barrel after remaining above that price for 15 weeks. Oil remains relatively expensive as the most recent WTI closing price was $94.62 per barrel, approximately $10 per barrel higher than a year ago.
Additional Gas Price Declines are Possible Through the End of the Year
- The national average declined four out of the previous five years from the beginning of November through the end of the year. The national average dropped 30 cents per gallon one year ago between October 1 and December 20.
- The annual average for 2013 likely will be the cheapest since 2010. Last year's annual average of $3.60 per gallon was the most expensive on record.
More than One-in-Ten Gas Stations Charging Less than $3 Per Gallon
- Approximately 13 percent of U.S. gas stations are charging less than $3 per gallon today for gas. The states of Arkansas, Missouri, Oklahoma and Texas all boast current statewide averages below $3 per gallon. Consumers in 34 states can find at least one station selling gas for less than $3 per gallon today.
One year after Hurricane Sandy, the storm-impacted region is paying an average of about 50-60 cents per gallon less than peak prices following the storm. Peak gas prices last year following Sandy included:
- $3.65 per gallon in New Jersey on Nov. 9 compared to $3.15 today.
- $4.17 per gallon in New York City on Nov. 13 compared to $3.64 today.
AAA updates fuel price averages daily at www.FuelGaugeReport.AAA.com. Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.