Gas Prices Drop Below $2/G in 9 States
With nine states paying less than $2 per gallon for gas this week, motorists in Hawai‘i continue to pay the highest pump prices in the nation, AAA reported on Dec. 27, 2018.
At $3.41 per gallon, Hawai‘i is the nation’s most expensive market, followed by California ($3.38), Washington ($3.13), Alaska ($3.07), Nevada ($2.96), Oregon ($2.98) and Arizona ($2.68).
While expensive, prices are decreasing, with all state averages moving lower on the week. With a decrease of 6 cents, Hawai‘i saw the largest drop in price.
The nation’s top 10 largest weekly decreases are: Ohio (-15 cents), Indiana (-15 cents), South Dakota (-12 cents), Michigan (-12 cents), Montana (-11 cents), Kentucky (-10 cents), Illinois (-10 cents), Wisconsin (-10 cents), Wyoming (-9 cents) and Idaho (-9 cents).
The nation’s top 10 least expensive markets are: Missouri ($1.87), Oklahoma ($1.95), Arkansas ($1.97), South Carolina ($1.97), Texas ($1.97), Alabama ($1.97), Mississippi ($1.97), Louisiana ($1.98), Kansas ($1.99) and Iowa ($2.01).
Nearly 20% of states are currently enjoying prices below $2 per gallon.
Nationally, retail averages have dropped 83 of the past 90 days. The national average for regular unleaded gasoline currently sits at $2.30 per gallon, which is six cents less than one week ago, 24 cents less than one month ago and 16 cents less than at the same time last year.
Heading into 2019, gasoline demand is expected to dwindle during the month of January, an expected change following the busy holiday travel season. At the same time, OPEC will begin production cuts on Jan. 1, with hopes that the shift in global supply will push oil prices higher. The effectiveness of the cuts will likely not be known until later in the first quarter.
“All eyes are on OPEC to kick off the year,” said Jeanette Casselano, AAA spokesperson. “Many are waiting to see if they stick to their promise to cut crude production by 1.2-million b/d and if the proposed cuts will be enough to restore balance to the market.”
Over the past few years, OPEC and partnering countries have demonstrated a strong resolve to comply with proposed cuts in production. It is likely that the cartel will reconvene in April, and if there is a need to further balance global supply and demand, OPEC will likely tweak current production numbers at that meeting.