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Tuesday, 02 August 2022 14:53

Pump Prices Fall Again, But Will the Trend Stall?

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The national average for a gallon of gas fell to $4.21 on Aug. 1, down 14 cents from a week earlier. But a slight uptick in gas demand as more people fuel up could end the steady drop in daily pump prices.

“We know that most American drivers have made significant changes in their driving habits to cope with high gas prices,” said Andrew Gross, AAA spokesperson. “But with gas below $4 a gallon at nearly half of the gas stations around the country, it’s possible that gas demand could rise.”

 

According to new data from the Energy Information Administration (EIA), gas demand increased from 8.52 million b/d to 9.25 million b/d the last week of July. The estimated rate is 80,000 b/d lower than last year, but it could slow pump price decreases if the trend holds.

 

Additionally, total domestic gasoline stocks decreased by 3.3 million bbl to 225.1 million bbl, signaling that higher demand reduced inventory.

 

New survey data from AAA finds drivers are making significant changes to cope with high pump prices. Almost two-thirds (64%) of U.S. adults changed their driving habits or lifestyle since March, with 23% making “major changes.” Drivers’ top three changes to offset high gas prices are driving less, combining errands and reducing shopping or dining out.

 

The Aug. 1 national average of $4.21 is 63 cents less than a month ago and $1.04 more than a year ago.

 

The nation’s top 10 largest weekly decreases: Colorado (-22 cents), Kansas (-22 cents), Ohio (-22 cents), Nebraska (-21 cents), Indiana (-21 cents), Michigan (-20 cents), Iowa (-20 cents), Illinois (-19 cents), Oklahoma (-19 cents) and Arizona (-19 cents).

 

The nation’s top 10 least expensive markets: Texas ($3.71), South Carolina ($3.73), Georgia ($3.76), Oklahoma ($3.77), Arkansas ($3.77), Mississippi ($3.77), Tennessee ($3.78), Alabama ($3.78), Louisiana ($3.82) and Kentucky ($3.83).

 

Source: AAA