Gas prices are falling — and analysts expect them to drop much further
Written by ABC Audio. All rights reserved. on October 6, 2023
(NEW YORK) — Households strained by price hikes received welcome relief in recent days in the form of falling gas prices — and they’re expected to drop even further.
Over the past week, the nationwide average price of a gallon of gas has dropped 7 cents, which amounts to a nearly 2% decline, AAA data shows.
By the end of this month, prices could fall a staggering 50 cents, Patrick de Haan, the head of petroleum analysis at GasBuddy, said on Thursday in a message on X, formerly known as Twitter.
The current nationwide average price for a gallon of gas stands at $3.72, the lowest level since last July, de Haan said. At month’s end, he added, drivers will pay roughly $3.20.
“I expect October will be filled with treats in the form of falling #gasprices for motorists in every state,” de Haan said.
In Georgia, the state with the lowest average gas prices, a gallon costs about $3.18, AAA data shows. In all, the AAA data says, 10 states currently sell gas at or below an average price of $3.35 per gallon.
By contrast, the cost of a gallon of gas in California stands at $5.88, making it the state with the highest prices, AAA data shows. Even in California, however, the average price has fallen about 6 cents over the past week.
Prices in California are expected to fall dramatically in the coming weeks, de Haan said on X. “California will easily fall $1/gal by Thanksgiving, roughly triple the drop we expect in the national average,” de Haan said.
The decline in gas prices owes in large part to a steep drop in the cost of crude oil, the underlying commodity that refineries turn into gas. The price of Brent crude oil has fallen 13% since late last month.
Meanwhile, demand for gas has fallen as the busy summer traveling season has given way to an autumn slowdown, putting additional downward pressure on prices, Andrew Gross, AAA spokesperson, said in a statement on Thursday.
“Drivers are finally seeing some relief at the pump as the seasonal swoon picks up momentum,” Gross said.
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