Gas Prices Drop for Nine Consecutive Days

By Nadia Anderson
Manager, AAA Federal Relations
Monday, June 20, 2016

Gas prices have fallen for nine consecutive days, reaching today’s average national price of $2.33 per gallon. Gasoline demand remains on track to set a new all-time high for the 2016 summer driving season, however, crude oil remains relatively less expensive than recent years which is contributing to direct savings at the pump. Drivers are saving a nickel per gallon on the week, but are paying five cents per gallon more on the month. Averages are down 46 cents per gallon versus this same date last year, attributed year-over-year surpluses, and these savings are likely to continue as supply appears more than capable of keeping pace with growing demand.

Pump prices generally peak during the summer months, due to imbalances in supply and demand. Unlike many recent years, supply appears to be meeting the growing demand and as a result prices have held relatively steady and markedly lower than one year ago. On the whole, refineries are keeping up with growing demand and the latest data from the U.S. EIA shows that the market is well supplied. Additionally, expectations of increased production from Western Canada and the U.S. are likely to keep global crude oil prices relatively lower. The combination of the abovementioned factors is contributing to prices at the pump remaining at some of their lowest levels since 2005, and these comparative savings should persist, barring and major disruptions in production or supply.

Locally, South Jersey motorists are paying an average of $2.05 per gallon of unleaded gas. This is a decrease of 3 cents per gallon compared to both last week’s and last month’s price ($2.08). Today’s price is also 51 cents per gallon less than one year ago today ($2.51).

Quick Stats

• The nation’s top five most expensive markets are: California ($2.86), Hawaii ($2.75), Alaska ($2.68), Washington ($2.65), and Michigan ($2.59).