Gas prices drop amid wavering consumer demand, AAA says
Gas prices dropped an average of 17 cents per gallon
Gas prices have continued to fall as demand wavers, dropping an average of 17 cents across the U.S. last week, according to AAA.
This decrease brought the average price to $4.35 per gallon for the end of July, as oil prices sit in the mid-$90s range per barrel, according to AAA. Since reaching a record high of $5.01 per gallon in mid-June, the price of gas has consistently dipped since then.
"Consumers appear to be taking the pressure off their wallets by fueling up less," AAA spokesperson Andrew Gross said. "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. But the overall situation remains very volatile."
If you are looking to reduce your auto costs, you could consider switching to a more affordable auto insurance policy. Visit Credible to find your personalized car insurance premium without affecting your credit score.
66% OF AMERICANS REDUCE DRIVING AMID HIGH GAS PRICES: SURVEY
Gas prices could continue decreasing
The demand for gas rose slightly last week, from 8.06 million barrels a day to 8.52 million barrels per day, AAA said, citing data from the Energy Information Administration (EIA). But this is down from last year and is in line with the reduced demand in July 2020 due to COVID-19 restrictions.
"If gas demand remains low as stocks increase, alongside a continuing reduction in crude prices, drivers will likely continue to see pump prices decline," AAA said.
And as the price of gas decreases, it seems that consumers may be taking steps to reduce their usage to pay even less at the pump.
"On June 13 AAA said we hit a new all-time high with the average price of $5.01, which was $1.94 more than the year prior – a 63% increase," a spokesperson for Rocket Money said. "Rocket Money, formerly Truebill, saw its members spend 10% more on gas in June compared to the year prior. Clearly, people are carpooling, using public transportation or in some way finding ways to not buy as much gas as they did a year ago."
If you are struggling with high gas prices, you could consider switching your car insurance provider to save money on your premium. Visit Credible to compare multiple auto insurance providers at once and choose the one with the best rate for you.
CONSUMER SATISFACTION DROPS AMID AUTO INSURANCE RATE HIKES, ACCORDING TO JD POWER STUDY
This is where gas prices decreased the most
Gas prices are sliding but have dropped more significantly in some parts of the U.S. than others. These are the states that saw the largest weekly declines:
- Kansas: 29 cents
- Iowa: 25 cents
- Oklahoma: 25 cents
- Missouri: 23 cents
- Ohio: 22 cents
- Wisconsin: 22 cents
- Nebraska: 22 cents
- Delaware: 21 cents
- Wyoming: 21 cents
- Indiana: 21 cents
Additionally, the average price of gas in the U.S. varies by location. Here are the top 10 states with the least expensive average gas prices:
- Texas: $3.85
- South Carolina: $3.86
- Georgia: $3.88
- Mississippi: $3.89
- Alabama: $3.92
- Tennessee: $3.93
- Arkansas: $3.93
- Louisiana: $3.94
- Oklahoma: $3.96
- Kentucky: $4.00
If you want to reduce your auto expenses, switching insurance providers can help you save on your monthly costs. To see if this is the right option for you, you can contact Credible to speak to an insurance expert and get all of your questions answered.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at email@example.com and your question might be answered by Credible in our Money Expert column.