National Average Gas Prices Keep Coming Down, It's Not All Good News Yet

Some lucky Americans are right about now seeing gas prices sitting at under $3.7 a gallon. That’s a major improvement from over a month ago and clear proof that it’s possible to go even lower. However, not everyone gets the same values at the fuel station. Different states have contrasting laws and regulations, so it’s wise to be prepared for changes. Moreover, some concerning events are going on globally. Here’s what you should know about current and future pump values.
Pumping Gas 8 photos
Photo: Dawn MacDonald on Unsplash
June 2022 Fuel Prices in the U.S.2019 Fuel PricesJune 2022 Gas Prices at a Mobil Filling Station from Beverly HillsGas PumpFilling Up with GasGas Station in the DesertAugust 2022 Fuel Prices in the U.S.
Right now, things are going our way when it comes to paying for fuel. For the time being, we’re looking almost good. The national average gas price for regular is sitting at $4.1 per gallon. That’s almost $1 less than the cost we all witnessed just a little over 30 days ago.

But that craze is now over. Americans everywhere are seeing the results of OPEC+ listening to world leaders and the positive outcome of sending the Commander in Chief to another country for a friendly negotiation.

But, at the end of the day, what matters most is that gas prices are coming down on a daily basis. It’s a slow downtrend. However, for the time being, it’s looking like a sure thing. Gas is only going to become cheaper for Americans that didn’t buy an EV yet. There’s still a long way to go, considering that last year the national average gas prices were $3.01 for a gallon. Right now, the premium gas price is at an average of $4.9 per gallon.

2019 Fuel Prices
Photo: ChrisFix on YouTube
Things look a little worrying for diesel since the national average price is $5.2 a gallon right now. Around the same time last year, farmers, truckers, and construction workers were paying $3.2 a gallon.

Not everyone’s fortunate

Even though gas prices are on a clear downtrend, some states are not as lucky as others. On one end of the cost per gallon spectrum we have Texas and its state average of $3.6, while Californians still pay the most in the U.S. – the median is $5.5!

The clear distinction between Southern states and the West Coast remains valid even as prices are finding themselves coming down every 24 hours.

Nevada, Alaska, and Oregon continue to have the state average regular gas price at over $5 a gallon, while South Carolina is comfortably letting people pump their standard fuel at a state median price of $3.6, according to AAA updated data.

Most Americans noticed the change. That’s why people started using their internal combustion engine vehicles more and more again. This situation poses a couple of worries for the entire domestic gas and diesel market. We’re not yet anywhere close to having companies and traders not noticing the slight change in consumer behavior.

Gas Pump
Photo: Dawn McDonald on Unsplash
There are a couple of things that need to either remain as they are now or dramatically improve.

The worrying bits

At this point, demand is continuously growing. And it’s not happening only in the U.S. Countries like China or India get their fair share of the global production of gas and diesel. Even though there’s a general context of uncertainty, companies want to ramp up their operations, and more often than not that implies traveling, freighting, or making sure there are enough reserves available. On the other hand, moving military equipment and keeping all kinds of units active also contribute to the slightly growing demand.

Just to get a proper picture of what’s happening, after the most recent discounts Americans alone increased their gas consumption by 730,000 barrels in only a week. If the demand keeps growing, then it could hurt the price changes. Traders and gas companies will most likely act and make sure they get easy profits. After all, key players in the industry reported record profits in 2022 and remain adamant that there’s no way lower prices could’ve been made possible. They aren’t going to change this strategy.

Traders already acted on the increase in demand news and futures contracts rose in value by 0.1%. A barrel of Brent oil trades at $96.88, while WTI crude sits at $90.87.

OPEC+ might have something to say on the matter after member countries agreed they need to increase output. But they’ve decided only on 100,000 barrels per day. That’s just 0.1% of the current global oil demand.

Finally, we need to remember that a spike in demand will most likely end this downward gas price trend. So, it could be a good idea to buy some gas in large quantities daily if you’re a business that relies on transport. Otherwise, average consumers could just continue to carpool or give up the car in favor of public transport.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram
About the author: Florin Amariei
Florin Amariei profile photo

Car shows on TV and his father's Fiat Tempra may have been Florin's early influences, but nowadays he favors different things, like the power of an F-150 Raptor. He'll never be able to ignore the shape of a Ferrari though, especially a yellow one.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories