Gas Prices Are Expected to Keep Declining

By Alice Seeley

Across the country, gas prices have declined for 51 consecutive days, according to the White House and AAA. On average, gas prices have lowered by 17 cents to $4.35.

According to AAA data, the average gas prices are still 28.9% more expensive than last year. Only 19 states have average gas prices below $4, including Ohio, Iowa, and Wisconsin.

This latest drop in price is due to slowing consumer demand and a drop in crude oil prices. When gas prices reached $5 per gallon, consumers found ways to cut back.

“Consumers appear to be taking the pressure off their wallets by fueling up less, and there’s reason to be cautiously optimistic that pump prices will continue to fall, particularly if the global price for oil does not spike,” AAA spokesperson Andrew Gross commented.

Tom Kloza, global head of energy analysis at the Oil Price Information Service, agreed.

“When people pay and they see $100 for the bill, they panic and become apoplectic,” stated Kloza.

While the average gas price is still high at $4.16 per gallon, this average is raised by high prices in places such as New York and California. The median price of gas, now at $3.99 per gallon, is predicted to keep decreasing as the summer travel season ends.

Andy Lipow, president of Lipow Oil Associates, said the average would drop to $4.10 a gallon soon and will be $4 by Labor Day. Caleb Silver, Editor-in-Chief of Investopedia, agreed with Lipow. According to him, if “oil prices remain relatively stable for the rest of the year, then gas prices should continue to fall commensurately.”