AAA predicts a big drop in gasoline prices

24 Août, 2019, 09:18 | Auteur: Auguste Feret

Daily gas prices averages, including state and metro information, can be found at GasPrices.AAA.com.

NY drivers could see gasoline prices drop this fall by 25 cents per gallon compared to summer prices, AAA has forecasted.

For its Fall 2019 gasoline price projection, AAA assumes that crude oil prices will range from $50 to $60 per barrel.

Pointing out the national gasoline price average is already 15 cents cheaper than five weeks ago, AAA attributes the downward trend to less expensive crude oil, a post-Labor Day decline in fuel demand and refiners' seasonal switch to producing winter-blend gasoline.

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"AAA predicts that fall gasoline prices will be significantly less expensive than this summer with motorists finding savings in every market across the country", said Jeanette Casselano, AAA spokesperson. That is a considerable drop from last fall when prices ranged between $60 and $75. The drop is because total domestic crude inventories sit at 438.9 million bbl, which is 31.5 million bbl higher than last fall.

But, hurricane season has the potential to cause declining gas prices to shoot back up.

Yet, according to AAA's Gas Prices tracker, NY state now has an average price of $2.79 to $3.66 per gallon, among the highest-priced states in the country. "Gas prices should remain low heading into the holiday, unless something unexpected threatens fuel supplies, like geopolitical tensions or a hurricane in the Gulf of Mexico". For starters, they recommend routine maintenance, such as keeping tires properly inflated, moving components adequately lubricated, and ignition and emission systems in good operating condition.

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