Gasoline prices continue to fall as demand levels out after the holiday weekend. (iStock)
Gas prices fell an average of 5 cents this week, meaning consumers are paying less at the pump. AAA Report Found this: The average price of a gallon of gas is currently $3.56.
The drop this week was the largest in the nation this year. Last week’s drop in demand was mainly due to the slow season after Memorial Day, which led to lower gasoline prices.
“Now that the Memorial Day travel weekend is over, gas prices are expected to continue their gradual decline, with more locations east of the Rockies seeing gasoline selling for under $3 a gallon,” AAA spokesman Andrew Gross said.
Crude oil prices also remain low, contributing to the decline in prices: Demand fell to 9.14 barrels per day from 9.31 last week, according to data from the Energy Information Administration.
But an early storm season could arrive sooner rather than later, and one bad storm could have a severe impact on oil prices, sending gasoline prices soaring.
“The Atlantic hurricane season begins June 1, so it’s time to start watching the weather, as forecasters expect hurricanes to be very active,” Gross said. “Storms affecting oil production and refining centers on the Gulf Coast could temporarily boost prices, so stay tuned.”
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States with the highest and lowest gas prices
The list of states with the cheapest and most expensive gas stations changed this week. The cheapest gas markets include many southern states.
- Mississippi ($3.03)
- Arkansas ($3.06)
- Oklahoma ($3.07)
- Kansas ($3.10)
- Texas ($3.13)
- Louisiana ($3.13)
- Tennessee ($3.13)
- Missouri ($3.16)
- South Carolina ($3.18)
- Alabama ($3.20)
The West Coast of the United States has some of the most expensive gasoline states, but several other states across the country also have the highest gasoline prices.
- California ($5.09)
- Hawaii ($4.78)
- Washington ($4.53)
- Oregon ($4.28)
- Nevada ($4.27)
- Alaska ($4.24)
- Illinois ($3.99)
- Arizona ($3.81)
- Pennsylvania ($3.75)
- Idaho ($3.73)
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Falling auto loan rates are making new cars more affordable
New car sales are increasing, but not as much as used car sales
The cost of buying a car has come down a bit, bringing life back to the market, with new car sales up 5% year over year. Cox Automotive May Automotive Market Report Used car sales are doing even better, up 8% year-over-year as of May.
Buyers appear to be opting for used cars over new ones, mainly because used car prices are falling more than new car prices: Vehicles released in 2021 fell 0.6% at wholesale prices and 0.4% at retail prices in the last week of May.
Used-car prices have stabilized and are down from pandemic-era highs. April Consumer Price Index (CPI) The used vehicle index fell 0.4%, down 1.4% from the previous month.
New car prices are also falling, but not as sharply as older cars: The new car index fell just 0.1% in April’s CPI.
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