Pump Prices Continue to Plummet

A new survey by AAA finds that 13% of U.S. gasoline stations sell gas for under $3 per gallon.

November 04, 2013

WASHINGTON, D.C. -- Gasoline prices are continuing to fall, according to AAA, The Hill reports. Americans are paying the cheapest gas prices of the year following a 12-cent per gallon (3.5%) decline in October. The auto club released findings of its latest survey that showed 13% of U.S. gasoline stations sold gas for less than $3 per gallon.

Only Missouri boasts an average price for gas under $3, but 34 states have at least a single gas station that offers gas for lower than $3 per gallon. “There are fewer frowns on drivers’ faces as they leave gas stations given recent price declines,” said AAA spokesperson Avery Ash, in a press release. “Abundant supplies, declining demand, falling oil costs and the switch to winter-blend gasoline have helped push gas prices down in every single state.”

The average price of gas in October was $3.34 per gallon, which was the cheapest for the month since 2010. The average in October 2012 was $3.71 per gallon and it was $3.43 per gallon in 2011. The monthly average also declined from September this year, when it was $3.51 per gallon. The national average this past Thursday was 24 cents per gallon cheaper than a year ago, and drivers have paid less than last year to fill up for 87 consecutive days.

The lack of a major hurricane this year has helped refineries run relatively smoothly and maintain ample production. Much of the country switched to using less expensive winter-bend gasoline in September and October.

AAA expects the national average price of gas could drop to a low of about $3.10 per gallon before the year ends, which would be the cheapest average since February 2011. As many as ten states or more could see local averages drop below $3 per gallon. “Expect a nice holiday bonus in the form of much cheaper gas prices,” said Ash. “The national average should get tantalizingly close to $3 per gallon, and many consumers will find bargains below that price before the year is over.”

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