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AAA Fuel Gauge Report Overview By Avery Ash Director, Federal Relations
Oct 7, 2014 | Fuel
The national average price for regular unleaded gasoline is $3.29 per gallon. This price is the least expensive daily average since February 9, it is just two cents above the low for 2014 ($3.27 on February 7), and it is the lowest price for this calendar day since 2010 ($2.75). Today’s average is a nickel less than one week ago, 15 cents less than one month ago, and six cents less than one year ago. The national average has fallen for each of the past 11 days and could drop as low as $3.10-$3.20 per gallon before the end of the year.
For the fourth consecutive week, Hawaii ($4.17) remains the only state with an average price above four dollars per gallon. The western United States continues to lead the market posting the highest prices per gallon, with Alaska ($3.89), California ($3.68), Oregon ($3.63), and Washington ($3.62) following Hawaii as the nation’s most expensive markets. As the national average continues to decline, a few states are registering averages approaching the three dollar mark. Drivers in Missouri are paying the lowest average per gallon ($3.01), followed by South Carolina ($3.06) and Mississippi ($3.07). No state has registered a daily average of less than $3.00 per gallon since January 23 when Missouri was last below this threshold. Given relatively inexpensive crude prices, adequate supplies and cheaper winter-blend fuel, and barring any unexpected market-moving news, drivers in as many as 20 states could enjoy an average price of less than three dollars per gallon before the end of the year.
Locally, South Jersey residents are paying an average of $3.07 for a gallon of unleaded gasoline. This is 6 cents less than a week ago, 16 cents less than one month ago, and also 16 cents less than one year ago.
After operating at reduced rates for two weeks, ExxonMobil successfully restarted a crude distillation unit over the weekend at its Torrance, California refinery. The unit was initially down due to an issue with the heater, and earlier attempts to restart the unit were delayed due to a leak on process equipment. Refinery issues were also resolved in the Gulf Coast where two refineries returned to service, after the combination of planned and unplanned maintenance to the fluid catalytic cracking (FCC) unit challenged operations. This caused motor gasoline production in the region to slow to its lowest level in over a year, however with supply returning to normal levels motorists near the Gulf Coast should see pump prices point lower again.
Week-over-week, the average price for retail gasoline is down in 48 states and Washington, D.C. Drivers in 19 states are saving a nickel or more per gallon over this same period, with consumers in the Midwest experiencing the largest savings: Michigan (-14 cents), Ohio (-12 cents) and Indiana (-12 cents). On the other side of this trend, the retail average is up in Louisiana (+2 cents) and Florida (fractions of a penny) over the past seven days.
On the whole, motorists continue to pay less per gallon to refuel their vehicles. Month-over-month the average price has fallen in every state and Washington, D.C., led by the Midwestern states of Indiana (-37 cents), Michigan (-37 cents) and Ohio (-28 cents). Although the magnitude of monthly savings per gallon does vary from state to state, consumers in 41 states are saving a dime or more per gallon at the pump.
Year-over-year the average price is down in 45 states and Washington, D.C. Eighteen states are registering savings of a dime or more per gallon, with motorists in California (-18 cents), Rhode Island (-17 cents) and Connecticut (-17 cents) experiencing the largest savings at the pump. Of the five states where the price has increased in comparison to this date last year, Georgia (+5 cents) is the only state where the increment is more than fractions of a penny.
Global oil prices have continued to slide as supplies have outpaced demand and markets remain relatively unmoved by geopolitical tensions in the Middle East, Europe and Africa. WTI did settle 60 cents higher at $90.34 per barrel at the close of today’s formal trading on the NYMEX, but remains near the low-price for the year. On Friday, for the first time in 17 months, West Texas Intermediate (WTI) settled below $90 per barrel, breaking a streak of 365 consecutive settlements above this threshold.