It’s probably costing a little less to drive to work than it did this time last year.
Thank you, lower gas prices.
According to the recent Lundberg survey of fuel prices across the United States, current gas prices are the lowest they have been in four years. Only prices seen in 2010 beat out current prices as the lowest in recent years.
The average price of gasoline, as of October 24th, was down nearly 20 cents to $3.08 a gallon.
What’s responsible for the drop in cost?
Well, for one thing, the current price of oil is the lowest it’s been in years, which is vital in determining gas prices because, according to the US Energy Information Administration, oil makes up 67% of the price of gasoline.
Thriving oil production in North America and hesitance to cut output in Saudi Arabia are responsible for lower oil prices. Additionally, less oil consumption in Asia has paved the way for lower prices.
The cessation of selling the summer premium blend has also helped drop gas prices.
Beginning in June, summer blend is sold at gas stations as it keeps smog levels down during the heavy summer driving months. Usually sometime in mid-September gas stations start to phase out the summer premium and revert to the normal blend, which lowers prices because the summer premium is usually 10-15 cents more expensive than normal blends.
However, in California summer premium can be sold deep into October, which is one of the reasons why prices in the state are typically higher compared to the rest of the U.S.
A weak hurricane season in the Gulf has also chipped in as a contributing factor to lower gas prices.
Most of our nation’s refineries are situated along the Gulf Coast, so when inclement weather hits the region, the entire country feels it as well, particularly at the pump.
A damaged refinery in Louisiana or an evacuated offshore drill can drive up the price of gas elsewhere around the country. So far, though, this current hurricane season in the Gulf has been uneventful, which, in turn, has kept gas prices down.
Where you live, though, tends to be the foremost determining factor on how much gas will cost.
The Lundberg survey discovered that San Francisco has the highest current gas prices, while Memphis pays the lowest, at around $2.73 per gallon.
In May, gas prices hit a year-high of $3.72 per gallon, but since have dropped 29 cents on average around the country, and transportation experts expect prices to keep dropping.
