See which states have seen the biggest declines ahead of the holidays
Holiday inflation hitting consumers hard this season
Inflation held nearly steady in November, as drops in gas prices and long-lasting goods mostly offset still hot increases for service.
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The national average price for a gallon of gas are going down in the U.S. with Tuesday’s national average just at $3.137, according to AAA.
The amount is 9 cents lower than last week’s average making this week’s prices the lowest point in the entire year. The decline comes as the cost for oil struggles to remain above $70 per barrel, an AAA report published last week. About the same time, OPEC+ announced voluntary production cuts for about 2 million barrels daily.
“Historically, crude oil tends to drop nearly 30% from late September into early winter with gasoline prices trailing the play,” AAA spokesperson Andrew Gross said in the report issued Dec. 7. “More than half of all U.S. fuel locations have gasoline below $3 per gallon. By the end of the year, the national average may dip that low as well.”
Experts expect the downward trend in the U.S. to continue due to an expected 7% cut in gas consumption this winter, as the warmer winter brought by El Niño cuts the demand for heat.
Global prices on steady decline due to higher production
Gas prices are also down globally because of a rise in gas production despite a lower demand for it.
OPEC+ has announced that it will cut oil supply during the first quarter of 2024 to support oil prices. However, portfolio investors remain skeptical about OPEC+ countries making further cuts to boost prices’, according to Reuters.
Energy research firm FGE forecasts that OPEC+ will tighten its grip on next year’s market and ramp up production in the second half of 2024, Insider reported.
Which states have the lowest gas prices?
According to AAA, these states have the cheapest average gas prices as of Tuesday, Dec. 12:
- Texas ($2.60)
- Mississippi ($2.70)
- Oklahoma ($2.68)
- Missouri ($2.70)
- Louisiana ($2.71)
- Arkansas ($2.72)
- Kansas ($2.79)
- Alabama ($2.79)
- Tennessee ($2.79)
- Ohio ($2.80)
Which states have the highest gas prices?
According to AAA, the states that have the highest average gas prices for a gallon of regular are, as of Tuesday, Dec. 12:
- California ($4.70)
- Hawaii ($4.70)
- Washington ($4.260)
- Nevada ($4.020)
- Oregon ($3.99)
- Alaska ($3.81)
- Pennsylvania ($3.49)
- New York ($3.47)
- Idaho ($3.43)
- Vermont ($3.41)
Which states had the largest declines?
According to AAA, the states that have seen the largest gas price decreases as of Thursday, Dec. 7:
- Colorado (−12 cents)
- Utah (−11 cents)
- Idaho (−11 cents)
- California (−10 cents)
- Florida (−10 cents)
- Indiana (−10 cents)
- New Mexico (−9 cents)
- Arizona (−8 cents)
- Kentucky (−8 cents)
- Nevada (−8 cents)
Contributing: Juan Carlos Castillo, USA TODAY Network
Barbara Terrio is a seasoned business journalist, delving into the world of finance, startups, and entrepreneurship. With a knack for demystifying complex economic trends, she helps readers navigate the business landscape. Outside of her reporting, Barbara is an advocate for financial literacy and enjoys mentoring aspiring entrepreneurs.
