Gas prices experienced the largest drop of the year this week and are likely to continue dipping into the summer, according to the latest AAA report.
The national average cost for a gallon of gas was $3.48, a significant eight cents dip from the previous week. The lower gas prices will likely linger as motorists head into summer and plan Fourth of July road trips.
“This drop in pump prices appears to have some sticking power for now,” AAA Spokesperson Andrew Gross said. “More states should see their averages dip below $3 a gallon in the coming weeks.”
If you’re trying to lower your overall auto costs, you could consider switching auto insurance providers. You can visit Credible to compare quotes from different companies without affecting your credit score.
MIDDLE-INCOME AMERICANS FEEL MORE OPTIMISM ABOUT FINANCES AND ECONOMY’S DIRECTION: SURVEY
Summer gas is cheaper
Switching to summer blend fuel typically drives costs up at the pump because the blend is designed to lower emissions during the summer and is more expensive to refine. However, this summer, a combination of lower oil prices and high product output means prices are likely to drop further even as drivers head deeper into the summer driving season, according to Patrick De Haan, head of petroleum analysis at GasBuddy.
“The calendar has closed on May, and so too has the door closed on rising gas prices, with the national average declining to its lowest level since March,” DeHaan said. “With GasBuddy data showing gasoline demand plummeting after Memorial Day, and refiners inputting the largest amount of oil into their facilities in years, it’s very likely we’ll continue to see gas prices fall as we approach July 4.
“Diesel prices also continue to decline to their lowest level in nearly 11 months,” DeHaan continued. “The future looks bright for falling fuel prices across the board, though we’ll have to keep our eyes on hurricane season.”
OPEC’s meeting and agreement to extend production cuts into 2025 will not likely negatively impact gas prices as refiners crank up their outputs, DeHaan said.
Shopping for cheaper auto insurance is another way drivers can lower the cost of owning a car. Visit Credible to find your personalized premium without affecting your credit score.
76% OF BUY NOW, PAY LATER USERS SAID IT HELPED IMPROVE THEIR FINANCIAL SITUATION BUT BEWARE OF RISKS: SURVEY
Buy gas in these states to spend less
Gas costs for motorists nationwide fluctuated, with some states tallying higher averages than others. These 10 states had the lowest prices:
- Mississippi ($2.98)
- Arkansas ($3.00)
- Oklahoma ($3.00)
- Texas ($3.02)
- Kansas ($3.06)
- Louisiana ($3.06)
- Tennessee ($3.07)
- Missouri ($3.11)
- South Carolina ($3.13)
- Alabama ($3.15)
These 10 states saw the biggest fluctuation in prices:
- Indiana (-17 cents)
- Alaska (-16 cents)
- Illinois (-13 cents)
- Florida (-13 cents)
- Michigan (-13 cents)
- Ohio (-13)
- Kentucky (-13)
- Nevada (-11)
- California (-11 cents)
- Wisconsin (-10 cents)
If you are shopping around for new auto insurance, you can use the Credible marketplace to compare multiple providers and find your personalized rate in minutes.
REPUBLICAN STATES FILE SUIT TO STOP BIDEN’S SAVE STUDENT LOAN REPAYMENT PLAN
Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.
Read the full article here
