As national gas price averages slowly and steadily fall of late, the American Automobile Association (AAA) has issued a report examining whether the reduction is long term.
At $2.82, the national gas price average is the lowest since mid-September and numbers have been dropping slowly and steadily for the last two weeks, but there is a question of whether cheaper gas prices may be temporary for motorists.
“Just like the outside temperature, motorists are seeing gas prices cool off,” Jeanette Casselano, AAA spokesperson, said. “The last few weeks saw peak refinery maintenance season start to wrap-up and push less expensive gas prices, but the lower prices are not likely to be a long-term trend. AAA expects that gas prices will likely start to increase as early as later this week ahead of the Nov. 4 Iran sanctions announcement and the mid-term elections.”
AAA officials noted how expensive gas prices are will depend on how the market reacts to the early November events, but added motorists are not likely to pay summer prices this winter and today’s average is three cents less than last week, six cents cheaper than last month and $0.35 more expensive than this time last year.
The potential price decline is likely to be short-lived, AAA officials said, as U.S-imposed sanctions on Iran’s crude exports will take effect on Sunday, which may heighten fears in the market about reduced global supply amid growing global crude demand.