Gas Prices Near $3.40, Dropping in Many States

Gas prices across the United States have recently dropped to just over $3.40 per gallon, offering a welcome relief to drivers as they approach the summer season. This decline is attributed to a combination of factors including below-normal demand and falling oil prices. While the current prices are still a far cry from the all-time high reached two years ago, they are a significant change in the right direction for consumers.

According to data from GasBuddy and AAA, the national average price per gallon hovers around $3.42 and $3.44, respectively. However, prices vary widely from state to state, with the West Coast experiencing the highest prices at nearly $5 per gallon, while some Southern states enjoy prices under $3.

States in the Southeast and southern Great Plains stand out for their notably lower gas prices, thanks in part to their low state gas taxes. Mississippi leads the pack with an average price of $2.92 per gallon, followed closely by Arkansas, Oklahoma, Texas, and Tennessee, all below $3. These regions have seen consistent drops in prices over recent weeks, with some states experiencing decreases as significant as 29 cents per gallon.

The Southwest and West Coast have also witnessed substantial decreases in gas prices. Alaska, for example, has seen prices plummet by 39 cents over the past month to just below $4 per gallon. California, known for its typically high gas prices, saw a significant 38-cent decrease, bringing prices down to $4.91 per gallon.

Despite a typical seasonal increase in gas prices due to rising fuel demand, this year has seen a different trend. While demand for retail gasoline increased by 2.7% in the week ending June 8, it has been below previous years’ levels. This, combined with strong gasoline supply and stagnant oil prices, has helped offset the increase in demand, contributing to the recent drop in gas prices.

Looking ahead, Americans are expected to save approximately $425 million weekly on gas compared to the same time last year, according to GasBuddy. This trend is anticipated to continue leading up to the busy July 4 weekend. However, it’s worth noting that not all states have seen decreases; Colorado, for instance, experienced a slight uptick in gas prices over the past month.