(WASHINGTON, July 28, 2014) Amid continuing geopolitical tensions in Eastern Europe, the Middle East and Northern Africa, American motorists are paying the lowest average retail price at the pump since March 17. This is due to U.S. refineries running near their highest rates since 2005, according to the Energy Information Administration, and domestic demand that was reported last week to have dropped back below nine million barrels per day.
The national average price for unleaded gasoline has dropped every day in July and has fallen on 31 consecutive days, which is just short of the multi-year record of 36 straight daily declines registered last fall. Today’s average of $3.52 per gallon is five cents less than one week ago, 16 cents less than one month ago and 11 cents less than the same date last year. Both the weekly and monthly declines are the largest registered drops since November.
Over the last week consumers in 46 states and Washington D.C. have seen the price at the pump continue to fall, led by drivers in several Midwestern states who are saving more than a dime per gallon: Michigan (-14 cents), Indiana (-13 cents), and Ohio (-12 cents). Motorists in Hawaii ($4.34), Alaska ($4.15), and California ($4.00) continue to pay the highest prices per gallon, while those in South Carolina ($3.26), Missouri ($3.27) and Alabama ($3.27) pay the least.
Drivers in nearly every state across the country continue to experience month-over-month and year-over-year savings at the pump. The price has dropped in 47 states and Washington D.C. over the past 30 days, with drivers in six states saving a quarter or more per gallon: Michigan (-43 cents), Kentucky (-35 cents), Illinois (-31 cents), Ohio
(-28 cents), Indiana (-28 cents) and Missouri (-25 cents). Year-over-year averages reflect similar savings, with consumers in 46 states and Washington D.C. paying less at the pump. Of this total, 27 states and Washington D.C. register double-digit savings per gallon, led by: Illinois (-31 cents), Kansas (25 cents), Missouri (-23 cents) and Delaware (-22 cents). Notably, over the past 14 days the price has fallen in almost every state, and Washington D.C., with the exception of Wyoming and Idaho where drivers are paying a penny more per gallon.
The global oil market continues to closely monitor the situation abroad, including tensions between Ukraine and Russia, Hamas and Israel, and production issues in Libya due to civil unrest. These events have yet to impact global supply, but have been cited by analysts as factors keeping a “floor” under crude oil prices and may limit how far U.S. pump prices can fall.