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Sep 19, 2014 | Fuel
With just one week remaining before many parts of the country will begin the switch to cheaper winter-blend fuel, the national average price for regular unleaded gasoline is $3.44 per gallon. Today’s national average is fractions of a penny more than one week ago, but it is four cents less than one month ago and 13 cents less than the same date last year.
The national average price for retail gasoline historically declines in the weeks after Labor Day, due to the end of the summer driving season and ample supply. September also marks the start of refineries beginning their yearly transition to producing a winter-blend of gasoline. This blend is cheaper to make because it does not need to meet emissions requirements that are in place in many areas to prevent pollution when temperatures are warmer. Motorists usually enjoy cost savings during this period; however geopolitical instability, hurricanes or events that disrupt production could still cause temporary spikes in regional prices in the coming months.
Hawaii ($4.27), Alaska ($4.02) and Washington ($3.86) continue to lead the market with the nation’s highest prices per gallon, followed by Oregon ($3.86) and California ($3.82). The western region of the United States represents the majority of nation’s most expensive markets, due to lingering effects from issues at local refineries. On the other end of the spectrum, motorists in the southern states of South Carolina ($3.16), Mississippi ($3.17), Virginia ($3.18) and Arkansas ($3.20) are paying the least per gallon at the pump – reflecting a savings of more than one dollar, in contrast to the nation’s most expensive state (Hawaii).
Locally, motorists in South Jersey are paying an average of $3.24 for a gallon of unleaded gasoline. This is four cents a gallon more than one week ago, but five cents less than one month ago. It is also 24 cents per gallon less than one year ago.
Although the national average has ticked upward over the past seven days, drivers in 32 states and Washington, D.C. are paying a bit less at the pump versus one week ago. The largest drop in retail prices have been in Ohio (-7 cents), Nevada (-3 cents) and New Mexico (-3 cents), compared to four states where prices have jumped by a nickel or more: Illinois (+8 cents), West Virginia (+5 cents), Kentucky (+5 cents) and Indiana (+5 cents).
Most consumers are experiencing month-over-month savings for retail gasoline. The price at the pump is lower in 44 states and Washington, D.C. during this span with drivers in 26 states saving a nickel or more per gallon. The largest declines have been in New Mexico (-11 cents), Washington, D.C. (-10 cents), Connecticut (-10 cents), Arizona (-10 cents), New York (-10 cents) and Pennsylvania (-10 cents).
Year-over-year comparisons reveal a similar picture. Motorists in 44 states and Washington, D.C. are saving money at the pump. The price per gallon is discounted by a dime or more in 35 states and Washington, D.C., and consumers in seven states are saving a quarter or more per gallon. Drivers in the Midcontinent states of Iowa (-33 cents), Kansas (-32 cents), Nebraska (-29 cents) and Minnesota (-28 cents) are experiencing the largest savings in the retail price for gasoline, largely reflecting a run up in prices at the end of last year’s summer driving season.
Global markets have kept a wary eye on geopolitical unrest, particularly in Ukraine and Iraq. However, these developments have had little impact on supply and subsequently the retail price of gasoline. News on Friday of a possible ceasefire between Russia and Ukraine put further downward pressure on oil prices. Despite some reports of violence over the weekend and the announcement today of additional European sanctions on Russia, global oil prices continue to slide. At the close of formal trading on the NYMEX, West Texas Intermediate (WTI) crude oil settled 63 cents lower at $92.66 per barrel. This marks the lowest settlement for WTI since January 14.