AAA Anticipates Savings at the Gas Pump this Summer

Nearly every state’s gas price average is cheaper than a week ago, a month ago and a year ago. Today’s national average is $2.74, which is seven-cents cheaper than last week, 13-cents less than a month ago and 18 cents cheaper than a year ago.

“Refinery utilization in the United States is at its highest level since early January, resulting in overall gasoline stocks at healthy levels to meet robust summer demand. Prices are dropping due to cheaper crude oil and at the same time U.S. supply is keeping pace with demand,” said Jeanette Casselano, AAA spokesperson. “The national average is poised to fall to at least $2.70 this week – an indication that pump prices may be even cheaper this summer.”

For the last three weeks demand has remained relatively robust at 9.4 million b/d. Meanwhile, gasoline stocks have increased weekly with total inventories at nearly 4 million bbl ahead of the five-year average, according to Energy Information Administration (EIA) data.

  • The nation’s top 10 largest weekly decreases are: Ohio (-21 cents), Indiana (-17 cents), Michigan (-15 cents), Illinois (-11 cents), Kentucky (-10 cents), Oklahoma (-9 cents), Maine (-8 cents), Wisconsin (-8 cents), Nebraska (-8 cents) and South Carolina (-7 cents).
  • The nation’s top 10 least expensive markets are: Mississippi ($2.32), Louisiana ($2.35), Alabama ($2.35), South Carolina ($2.36), Arkansas ($2.40), Texas ($2.41), Tennessee ($2.42), Oklahoma ($2.46), Missouri ($2.48) and Virginia ($2.49).  

Mid-Atlantic and Northeast

A number of states from the Mid-Atlantic and Northeast appear on the top 10 list for largest changes for the week, month and year:

  • Weekly: Maine (-8 cents)
  • Monthly: North Carolina (-17 cents), Tennessee (-16 cents) and Delaware (-16 cents)
  • Yearly: Delaware (-26 cents), Tennessee (-25 cents) and New Hampshire (-25 cents)

Driving through the region, motorists will find gas prices on average at $2.65 with the most expensive at $2.89 in Pennsylvania, New York and Connecticut. The cheapest price is $2.42 in Tennessee.

Gas price declines this week were supported by a sizeable build in gasoline stocks – nearly 1.9 million bbl, bumping total inventories to 65.1 million bbl. In addition, regional utilization pushed up for a second week to nearly 94%. These moves will help to keep gas prices stable, but more likely will push them cheaper in the month ahead.

South and Southeast

Florida (+2 cents) was the only state in the region and country to see gas prices increase on the week. Meanwhile, seven South and Southeast states saw pump prices drop a nickel or more since last Monday: Oklahoma (-9 cents), South Carolina (-7 cents), Texas (-7 cents), Mississippi (-7 cents), Arkansas (-6 cents), Georgia (-6 cents) and New Mexico (-5 cents).

As the region continues to carry among the cheapest gas price averages in the country, every state’s average is cheaper by at least a dime compared to last month. The region also touts some of the largest monthly decreases in the country. Georgia (-18 cents), Texas (-17 cents), Louisiana (-15 cents), (Florida (-15 cents) and South Carolina (-15 cents) rank among the top 10 states with the biggest change in pump prices compared to last month.

As refinery utilization held steady on the week, regional stocks drew by 1.8 million bbl and dropped total stocks to 82.8 million bbl. While the draw was large, inventories sit ahead of this time last year and are the largest level for this time of year (early June) on record for the region, per EIA data. Motorists in the region can expect to see even cheaper gas prices throughout the summer.

West Coast

Pump prices in the West Coast region are the highest in the nation, with all seven states landing on the top 10 most expensive list today. California ($3.88) and Hawaii ($3.64) are the most expensive markets. Washington ($3.46), Alaska ($3.44), Nevada ($3.45), Oregon ($3.33) and Arizona ($3.07) follow. Pump prices in the region have mostly decreased on the week, with Oregon (-7 cents) seeing the largest drop.

The EIA’s recent report for the week ending on May 31 showed that West Coast gasoline stocks increased by approximately 2.4 million bbl from the previous week and now sit at 30.8 million bbl. The current level is only 300,000 bbl less than last year’s level at this time, which could cause prices to decline further if there are no supply disruptions in the region this week.