Gas Prices Drop as Midwest Refineries Resume Production

The national average price for a gallon of regular gasoline fell more than five cents in the past week to $2.335. The most common price remained flat for the week at $2.199, and the average difference between the highest 5% of prices and the lowest 5% prices is $1.077, up nearly a dime. One year ago, a gallon of regular gas averaged $2.801 in the United States.

The region where prices have slipped the most in the past week is the Midwest, where earlier refinery outages, both scheduled and unscheduled, are being resolved and production is once again increasing. GasBuddy reported that prices fell the most week over week in Ohio (19 cents a gallon), Indiana (18 cents) and Michigan (18 cents).

Prices rose the most in Montana (5 cents per gallon), Hawaii (4 cents) and Wyoming (3 cents).

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GasBuddy also noted:

The slide in fuel prices nationally comes after crude oil prices came under pressure last week, slipping back under $50 per barrel on economic concerns, mainly associated with anxiety over a possible United Kingdom exit from the European Union and a strengthening U.S. dollar.

All things considered, gasoline prices will start the summer solstice later today at their lowest level in some eleven years. While motorists have had anxiety with the recent volatility in prices, rest assured that barring any major changes, fuel prices this summer are very likely to average out to their lowest level since the 2005 driving season. While hurricane season is expected to be more active than normal, high levels of refined products and crude oil could offset a major blow, though motorists demand for gasoline this summer is likely to break levels, and there is less margin for error at refineries than previous years.

The five states with the lowest average prices are South Carolina ($2.023), Oklahoma ($2.046), Mississippi ($2.058), Arkansas ($2.074) and Louisiana ($2.100). Nine states have gas prices that exceed $2.50, led by California ($2.860), Hawaii ($2.783), Washington ($2.647), Alaska ($2.633) and Michigan ($2.574). Illinois; Washington, D.C.; Nevada; and Oregon are the other four.

The five metro areas where gas is cheapest are: Tulsa, Oklahoma ($1.947 a gallon); Lubbock, Texas ($1.973); Greenville, South Carolina ($1.989); Spartanburg, South Carolina ($1.995); and Myrtle Beach, South Carolina ($2.015).

Among U.S. gas stations, nearly 94% are selling gas for $2.00 or more, while 56% are selling gas for $2.25 to $2.49 a gallon, and 100% are selling gas for more than $1.75 a gallon.

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