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Summer Arrives with Decreased Gas Costs

Nationwide gas prices are on a downward spiral due to reduced demand and an influx of oil supply, providing a possible respite for summer travelers, as reported by AAA.

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Nationwide gas prices decrease, driven by reduced demand and heightened oil supply, potentially...
Nationwide gas prices decrease, driven by reduced demand and heightened oil supply, potentially providing relief for this summer's travelers, according to AAA's reports.

Summer Arrives with Decreased Gas Costs

💔ā„vc Gas Prices on a Slide: Small Biz Chronicles Put a spring in your step, because gas prices are coming down just as peak travel season approaches! According to AAA, the national average for a gallon of gas has dropped by three cents over the past week, setting it at $3.15 as of May 8. Compared to one year ago, that's a whopping decrease of nearly 49 cents!

Even better? A lull in demand between spring and summer travel periods, plus increased oil output from OPEC+ in June, means we could be seeing even lower pump prices for summer travelers. Buckle up, road trippers; it looks like you're in for a sweet ride!

Gas Prices by the Numbers

Here's a breakdown of the changing national average gas prices:

  • Today's National Average: $3.152
  • One Week Ago: $3.186
  • One Month Ago: $3.246
  • One Year Ago: $3.640

Ready for some more numbers? According to the Energy Information Administration (EIA), gasoline demand has decreased from 9.09 million barrels per day (b/d) last week to 8.71 million b/d. Meanwhile, total domestic gasoline supply edged up slightly from 225.5 million barrels to 225.7 million barrels. However, gasoline production dipped, averaging 9.7 million b/d last week.

The Oil Market in a Nutshell

On Wednesday, West Texas Intermediate (WTI) crude oil prices saw a drop of $1.02, settling at $58.07 per barrel. The EIA reports that U.S. crude oil inventories fell by 2 million barrels to a total of 438.4 million barrels. Inventory levels are about 7% below the five-year average for this time of year.

Electrifying EV Costs

What about electric vehicle (EV) charging costs? The average national cost per kilowatt hour (kWh) at public EV charging stations rose by two cents from the previous week, now averaging 36 cents per kWh.

State-by-State Analysis

Wondering how your state stacks up? Here are the most and least expensive gasoline markets:

Most Expensive Gasoline Markets:

  1. California - $4.82
  2. Hawaii - $4.49
  3. Washington - $4.26
  4. Oregon - $3.90
  5. Nevada - $3.89
  6. Alaska - $3.60
  7. Illinois - $3.43
  8. Pennsylvania - $3.30
  9. Idaho - $3.30
  10. Utah - $3.30

Least Expensive Gasoline Markets:

  1. Mississippi - $2.64
  2. Louisiana - $2.70
  3. Oklahoma - $2.73
  4. Arkansas - $2.74
  5. Alabama - $2.75
  6. Tennessee - $2.75
  7. Texas - $2.76
  8. South Carolina - $2.77
  9. Missouri - $2.82
  10. Kansas - $2.83

As for EV charging costs, here are the most and least expensive markets:

Most Expensive EV Charging Markets (per kWh):

  1. Hawaii - 54 cents
  2. Alaska - 47 cents
  3. West Virginia - 47 cents
  4. Montana - 44 cents
  5. Louisiana - 43 cents
  6. Kentucky - 42 cents
  7. Tennessee - 42 cents
  8. Idaho - 42 cents
  9. South Carolina - 41 cents
  10. New Hampshire - 40 cents

Least Expensive EV Charging Markets (per kWh):

  1. Kansas - 22 cents
  2. Missouri - 25 cents
  3. Delaware - 26 cents
  4. Iowa - 27 cents
  5. Nebraska - 29 cents
  6. Utah - 29 cents
  7. Texas - 30 cents
  8. Maryland - 30 cents
  9. Vermont - 30 cents
  10. North Carolina - 31 cents

Digging Deeper: The Why Behind the Dip

Though specific data for May 2023 is not yet available, we can infer that declining gas prices during similar periods are often linked to decreases in crude oil prices, economic uncertainties impacting demand, and seasonal factors like lower travel demand between spring and summer.

  • The Organization of Petroleum Exporting Countries (OPEC) might attribute the decreasing cost of gasoline to the increase in oil output from OPEC+, which is expected in June.
  • On an average day, the average cost of charging an electric vehicle (EV) at public charging stations has increased by two cents, setting it at 36 cents per kilowatt hour (kWh).
  • Throughout the United States, Wednesday's national average price for crude oil, as reported by the Energy Information Administration (EIA), was $58.07 per barrel, a decrease of $1.02 from the previous day.

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