AAA Michigan says gas prices statewide have dropped 3 cents from the previous week.
Advertisement
AAA Northeast said Monday its latest price survey found that self-serve, regular has gone down another penny in the past week, to an average of $1.95 per gallon.
As the new week begins the headlines remain focused on China which is being blamed for the fall in global equities and the run for safe havens last week which pushed gold and the yen to recent highs. Despite the likelihood of higher prices by spring, AAA does not expect the national average price of gas to rise above $3 per gallon in 2016. At the same time, slowing national economies in the largest countries, including China, will lower demand. According to ABC News, the average price of gasoline is now .05 a gallon, dropping a penny over the past three weeks. Los Angeles prices peaked in mid-July at $4.31 per gallon following additional unplanned refinery outages, according to EIA.
The organization says falling crude oil prices and an abundant domestic supply continue to drive down prices at the pump.
“If lower gas prices encourage more people to drive or to drive longer distances than normal, then NCDOT could see additional motor fuel tax revenue”. He also noted that oil production in the United States has doubled over a six year period, thus not needing to import as much of it from overseas.
States such as Alabama where the gas prices are already low could be among the first to benefit from the ongoing decline.
Midwest (Chicago and Cleveland): Retail gasoline prices in Chicago peaked in mid-August as the result of an unplanned refinery outage near Whiting, Indiana.
Drivers who like the lower prices at the pump, may soon have even more to smile about.
Advertisement
GasBuddy, an organization that tracks local gas costs in real-time, is forecasting a $17 billion reduction in consumer spending on gasoline in the US; this in comparison to previous year.
