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Gas Prices Fall Below $5 Again – Will the Decline Continue?

·2 min read
Ronira / Getty Images/iStockphoto
Ronira / Getty Images/iStockphoto

American drivers hoping for some relief at the gas pump have received a confirmation that things have the capacity to get better, if only slightly and not for long.

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Regular gas prices have been declining ever so slightly for about a week now at the pumps. From the June 14 average national high of $5.02 per gallon, prices have decreased a fraction of a cent each day since and are under the $5 mark, according to CNN.

According to AAA’s daily tracker of national and state average gas prices, the current average price of regular-grade gas rests at $4.981, down from $4.983 yesterday. Mid-Grade, premium and diesel also saw modest reductions, to hit $5.379, $5.677 and $5.815 respectively today (although diesel had its highest recorded average price just yesterday, ringing in at $5.816 a gallon).

As AAA reports, new data from the Energy Information Administration (EIA) shows that total domestic gasoline stocks decreased by 700,000 barrels to 217.5 million barrels during the week of June 6 and gasoline demand declined slightly, to 9.09 million barrels per day (b/d) from 9.2 million b/d.

Soothed drivers should keep their hope strong for a while yet. Most predict these encouraging, but very slight decreases in price and demand will be short-lived. With the busy summer travel season approaching, demand will increase and, along with it, gas prices.

Tom Kloza, global head of energy analysis for AAA’s gas tracker Oil Price Information Service (OPIS), says that it is possible for the average price of gas to climb to nearly $6 per gallon over the summer.

“Anything goes from June 20 to Labor Day,” Kloza said recently about the demand for gas. “Come hell or high gas prices, people are going to take vacations,” he added, per CNN.

Additionally, Kloza claims that the average U.S. household purchases about 90 gallons of gasoline a month. That means these customers are paying $172 per month more than last year, with the average price rose $1.91 a gallon since 2021, per CNN Business.

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Right now, there are still 17 states where the average cost is $5 or higher. Today’s state prices range from Georgia’s low of $4.470 per gallon of regular-grade gas to California, where a gallon will cost you $6.398. Here’s hoping prices will continue to trend in a positive direction.

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This article originally appeared on GOBankingRates.com: Gas Prices Fall Below $5 Again – Will the Decline Continue?