Gasoline prices remained low due to a slight increase in demand. (iStock)
Gasoline prices continued to fall, dropping 4 cents to $3.60 per gallon. AAA Weekly Price Report found. This week’s average is still 7 cents higher than this time last year.
Weak driver demand led to lower gasoline prices. Demand rose slightly to 8.87 million barrels a day from 8.79 million barrels a day last week, according to Energy Information Administration (EIA) data. In addition to a slight increase in demand, lower oil prices have also made gasoline cheaper at the pump. Oil prices were hovering around $80 per barrel last week, AAA reported.
“Barring any unforeseen events, this slight decline in pump prices is not likely to change anytime soon,” AAA spokesman Andrew Gross said in a statement. “There are seven states where the average gas price in a county is less than $3 a gallon,” he said. “This trend is likely to accelerate as more gas stations east of the Rocky Mountains lower prices. .”
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States with the largest fluctuations in average gasoline prices
Gasoline prices fluctuated widely in certain states, with prices rising in some states and falling 11 cents in others. The states with the biggest week-to-week changes are:
- Colorado (+14 cents)
- Indiana (-11 cents)
- New Mexico (+11 cents)
- Nevada (-8 cents)
- Utah (-8 cents)
- Tennessee (-8 cents)
- California (-7 cents)
- Ohio (-7 cents)
- Delaware (-6 cents)
- Maryland (-6 cents)
Here are the states with the highest gas prices:
- California ($5.24)
- Hawaii ($4.80)
- Washington ($4.62)
- Nevada ($4.40)
- Oregon ($4.40)
- Alaska ($4.34)
- Arizona ($3.92)
- Illinois ($3.89)
- Idaho ($3.83)
- Pennsylvania ($3.75)
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The car buying market is slowly starting to stabilize
There are no signs that the car buying market will return to pre-pandemic levels, but high prices are starting to subside. Used car sales are starting to stabilize and inventory is increasing overall. Cars.com report found.
“The past five years have been very volatile in the auto industry, but we are starting to see some stabilization,” said Rebecca Lindland, senior director of industry data and insights at Cars Commerce. Said.
“We are living through a new normal in which vehicle costs have increased significantly and the mix of availability across price points has changed. The recovery of more affordable new cars under $30,000 is a sign of hope. “Over the past month, we have been optimistic that the worst may be behind us as the market stabilizes in January,” Lindland said. .
Used car prices are still not completely affordable, although some prices have come down. Consumers are now paying $93 more per 1,000 miles for used cars than they did in 2021, according to the report.
A new car is still a big deal for many buyers. Prices are still up more than 30% with no signs of changing anytime soon.
Cars.com’s new car price index is 132.9, indicating an affordability crisis. Prices remain high, and discounts on new cars are less common than during the pandemic.
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