Gasoline price are falling across the country and it’s great to see. Prices could even fall to lows not seen in more than three years.
According to data from AAAThe national average was just $3.37. That’s 47 cents lower than a year ago and 13 cents lower than a month ago. Still exceptions like California, where the average price is $1.22 ($4.59) higher than the national average. Or places like Oklahoma and Tennessee where the average price is just under $3.00 a gallon.
So what exactly is keeping gas prices low during a time when they’re typically higher due to summer travel? You can thank factors like electric vehicles, remote work and the elderly for helping keep prices in check. NPR reported:
Kloza points to a number of factors to explain the shift: Remote work means fewer people are commuting. There are an estimated 3.3 million electric vehicles on the road in the United States, more than double the number in 2021. More electric vehicles have helped control gasoline demand, though Kloza notes that the impact is relatively modest, with each million electric vehicles sold reducing demand by about 22,000 barrels per day. And Kloza also notes that the U.S. population is aging steadily—older Americans “tend to drive a lot less,” he says.
NPR says gas prices are expected to average just $3.00 per gallon during the holiday season and remain low through early 2025. But there’s one uncertain factor that could cause prices to spike: storm season It seems to start earlier and earlier every year.
Forecasters had warned of an especially active hurricane season this year, but things have been quieter than expected—so far. Hurricane Beryl caused significant damage in parts of the Caribbean and caused some disruptions to U.S. oil refining, but things returned to normal fairly quickly.
We may already be past this rough patch, as experts told NPR that the season typically starts to peak around this time of year. Gas prices started to decline more than a year ago. Back in August 2023, we have noticed Gas prices have been stable and unchanged. This is despite increased demand. However, gas prices are expected to drop further. All the more reason to support both electric vehicles and remote work.
