National Average Gas Price Back Below $3

Thanks to a run of relatively benign weather, an increase in U.S. gasoline inventories and reduced refinery problems, the national average gasoline price has fallen below $3 per gallon for the first time since May 1.

Since hitting the all-time record of $3.24 on May 22, the price of gasoline has taken a slow and consistent turn downward, falling about one cent per day.

And for the first time in just under two months, there are more states reporting state-wide average gas prices below $3 per gallon (26) than states reporting state-wide average gas prices above $3 per gallon (24). Currently, the state with the lowest average gas price is South Carolina at $2.81, and the state with the highest average gas price is Hawaii at $3.44 – nearly 20 cents higher than New Mexico, the next closest state.

However, there are growing concerns that this decrease in price will be the exception and not the rule for the remainder of the summer. According to a story published in the Edmonton Sun, the U.S. government released a report this past Wednesday that showed refineries may not be producing enough gasoline to keep up with the “peak summer demand.”

Considering the fact that refinery problems were the main reason behind the 45% jump in gasoline prices from February 1 through May 22, this certainly isn’t a good sign.

Additionally, the Department of Energy has revised its previous summer gasoline price estimate to $3.05 per gallon, which is up ten cents from its absurdly low original estimate. In the report, the DOE stated that gasoline prices will continue their slight drop through July and will spike again at some point in August.

Couple these two reports together and it looks like we’ll be back above $3 soon enough. In the meantime, enjoy the “cheap” gas!