Prices at the Pump Stay Limited During June's Start, Providing Fuel Consumers With Some Alleviation
Gas Prices Soar, Giving Drivers a Much-Needed Break
Good news for motorists! Gas prices across the States are remaining at a lower-than-usual level to kick off June, offering delightful savings at the pump as the summer travel season gears up. According to AAA, the national average price for a gallon of regular gas sits at a breathable $3.14, a decrease of two cents from last week and a substantial 36 cents lower than this time last year.
Why the price drop? AAA credits it to persistently low crude oil prices and a market that is witnessing supply outsmarting demand. In fact, gas prices have not been this low in early June since 2021.
Currently, the national average hovers at $3.146. A week ago, it stood at $3.166. One month back, it was $3.165, and a year ago, it was $3.502.
Data from the U.S. Energy Information Administration (EIA) reveals that gasoline demand has decelerated from 9.45 million barrels per day to 8.26 million in the past week. During the same period, total domestic gasoline supply increased from 223.1 million barrels to 228.3 million while production contracted to 9 million barrels per day.
On the oil front, West Texas Intermediate (WTI) crude closed at $62.85 per barrel on Wednesday, shedding 56 cents. Crude oil inventories also shrunk by 4.3 million barrels, placing total U.S. stock at approximately 7% below the five-year average for this time of the year, clocking in at 436.1 million barrels.
Moreover, the national average price for electricity at public EV charging stations remained steady at a modest 36 cents per kilowatt hour over the past week.
State-wise Breakdown
Most Expensive Markets
Drivers in California, Hawaii, Washington, Oregon, Nevada, Alaska, Illinois, Idaho, Utah, and Arizona might want to consider carpooling or opt for electric vehicles to save more at the gas station.
Least Expensive Markets
Motorists in Mississippi, Louisiana, Tennessee, Alabama, Oklahoma, Texas, Arkansas, South Carolina, Kentucky, and North Carolina can expect less urgency at the pump.
Highest EV Charging Costs per kWh
If you are an electric vehicle owner, areas like Alaska, West Virginia, Tennessee, Hawaii, Montana, Louisiana, South Carolina, New Hampshire, Kentucky, Arkansas, and Maryland will likely pinch your pocket.
Lowest EV Charging Costs per kWh
If EVs are your preference, you're better off parking your ride in Kansas, Missouri, Maryland, Delaware, Nebraska, Utah, Iowa, New Mexico, Massachusetts, or Colorado.
Bonus Insights:While specific data on gas price trends and contributing factors for June 2023 was unavailable, recent and historical data suggests a downward trend in average gas prices across the United States. Factors such as increased global oil supply, economic uncertainties for demand, seasonal demand dynamics, and lower oil prices contribute to this trend.
The energy industry's current supply surplus, as indicated by the U.S. Energy Information Administration (EIA), has led to a decrease in crude oil prices, which in turn impacts the finance industry, making it more affordable for motorists to buy gas in states like Mississippi, Louisiana, Tennessee, Alabama, Oklahoma, Texas, Arkansas, South Carolina, Kentucky, and North Carolina. Additionally, the ico sector may face a potential challenge as electric vehicle owners might consider switching to traditional vehicles due to the lower costs at gas stations.
