As average gas prices nationally have fallen during the summer, AAA said demand has not picked up. The combination leads AAA spokesperson Andrew Goss to suggest the national average could fall back below $4 a gallon this week.
“Oil is the primary ingredient in gasoline, so less expensive oil is helpful in taming pump prices,” Gross said. “Couple that with fewer drivers fueling up, and you have a recipe for gas prices to keep easing. It’s possible that the national average will fall below $4 this week.”
The national average recorded by AAA on Aug. 8 was $4.05 a gallon. The price is 67 cents less than it was a month ago, although still 87 cents more than the same week in 2021.
According to new data from the Energy Information Administration (EIA), gas demand dropped from 9.25 million barrels/day to 8.54 million barrels/day last week. The rate is 1.24 million barrels/day lower than last year and is in line with the need at the end of July 2020.
According to EIA, the total domestic gasoline supply rose slightly. If gas demand remains low and the supply continues to increase alongside falling oil prices, AAA said drivers will likely continue to see pump prices drop.
AAA said drivers made significant changes to cope with high pump prices. In a new survey, almost two-thirds of U.S. adults have changed their driving habits or lifestyle since March. Drivers’ top two changes to offset high gas prices are driving less and combining errands.
