Gas Prices Dip Amid Decreased Demand and Summer Heat

WASHINGTON, D.C. (July 18, 2024)—The national average price for a gallon of gasoline has decreased by four cents to $3.50, attributed to a significant drop in gasoline demand as consumers reduce driving in response to extreme summer temperatures. Andrew Gross, a spokesperson for AAA, noted that while the July 4th holiday typically marks the beginning of a busy travel season, recent trends indicate that many are opting to stay off the roads, potentially due to the ongoing heatwave. Recent data from the Energy Information Administration (EIA) reveals a sharp decline in gas demand, falling from 9.39 million barrels per day to 8.78 million. In contrast, domestic gasoline stocks have increased from 229.7 million barrels to 232.9 million barrels. However, gasoline production has seen a slight decrease, likely influenced by Hurricane Beryl, which caused output to drop from an average of 10.3 million barrels daily to 9.5 million. In terms of regional pricing, California remains the most expensive state for gasoline at $4.71 per gallon, followed closely by Hawaii at $4.69. Conversely, Mississippi boasts the lowest prices at $2.99, with several other Southern states also reporting prices below $3.20. Additionally, the EIA has reported a decrease in crude oil inventories, down by 4.9 million barrels, bringing the total to 440.2 million barrels, which is approximately 5% below the five-year average for this time of year. Drivers can access current gas prices along their routes using the AAA TripTik Travel planner.