A new report from AAA notes that the national gas price average is slowly falling, with increases at the pump presently in a distinct minority of states.
Over the last month, the national average has dropped by a nickel, according to AAA’s data. That said, prices average 15 cents higher than last year, at $2.57.
“Since the end of October, gasoline demand has mostly decreased as gasoline stocks have mostly increased, paving the way for cheaper gas prices,” said Jeanette Casselano, AAA spokesperson. “AAA expects stocks to continue to grow and drive gas prices even cheaper through year-end.”
Last week, the Midwest occupied both ends of the spectrum, with some of the most significant price hikes and drops. Michigan rose 10 cents even as its immediate neighbor, Ohio, fell 12 cents. California also experienced one of the largest price shifts this week, with a drop of 10 cents. Rounding out the top five were Florida with an 8 cent hike and Nevada with a 7 cent drop. Meanwhile, among the least expensive markets for the week were Texas at $2.20, Mississippi at $2.22, Oklahoma at $2.23, Missouri at $2.23, and Louisiana at $2.25.
Examining the situation region by region paints a fuller picture, however. Beyond the sizable changes to the central and Great Lakes states, the area boasted refinery rate bumps and stock increases. In the Mid-Atlantic and Northeast, gas prices were mostly down. However, drawn out over a year, the region is experiencing volatility even as its stocks reach their highest level since mid-October and refinery rates reach their highest point since August.
Meanwhile, in the South and Southeast, a few states — Florida, Louisiana, and Tennessee — saw price rises over the week, but the rest experienced declines. This trend more or less held over the month, while gas stocks hold at their highest level since mid-August and refinery rates are at their highest point since September. As for the West Coast, pump prices are down throughout the region, paired with increased stock prices and a year of greater supply. The Rockies had a bit of diversity, though, with some of the largest changes and highest average price. This region’s averages were costly, even with some price drops, and its gas stocks have ticked upward.
Also, on the horizon are the rise of crude prices and impending crude production cuts from OPEC, but AAA believes that the global crude supply will begin next year oversupplied.