Gas Prices Stabilize in Much of the Country

CARS.COM — Motorists in many parts of the country paid less to fill up during the past week, though the decline was a few pennies per gallon in most areas, as pump prices took a breather from steady increases that began in February.

The AAA Daily Fuel Gauge Report said the national average for regular was $2.20 Thursday, down 2 cents from a week ago and 46 cents cheaper than a year ago. The savings are even greater compared to this time in 2013 and 2014, when regular was selling for around $3.65 on a national average.

Related: Heavy Demand Continues to Pump Up Gas Prices

AAA also reports that the national average for premium gas was $2.68, up 15 cents from a month ago and 37 cents cheaper than a year ago. Diesel fuel was at $2.22, 13 cents higher than a month ago and 63 cents less than a year ago.

Pump prices typically climb during the spring and taper off in the second half of the year. Analysts expect more increases closer to the Memorial Day weekend, widely viewed as the kickoff of the summer driving season and the peak period for automobile travel.

Last year, gas peaked at $2.80 on June 15 and then steadily declined to less than $2 by the end of the year, largely because of a significant drop in oil prices. U.S. oil was trading at around $46 a barrel Thursday, about $14 less than a year ago, which should help keep a lid on pump prices.

This year, though, other factors affecting gas prices may enter the picture. The Energy Information Administration said that U.S. gasoline supplies at the beginning of May were at their highest level on record for that time of year. However, AAA noted that U.S. motorists are driving more, and demand for gas this summer is expected to rival 2007, when demand hit an all-time high.

"Although the market is well supplied with product, the notable growth in gasoline demand could cause pump prices to become volatile leading into the summer driving season," AAA said in a release.

"Refineries nationwide are ramping up production, which should help increase supplies in regional markets. This is good news for the average driver, because if supply can keep pace with demand, averages should remain relatively low and drivers should continue to benefit from comparative savings at the pump."

Whereas regular averaged less than $2 in only three states a week ago, six were less than $2 Thursday: Arkansas, Kansas, Missouri, Oklahoma, South Carolina and Texas. Missouri had the lowest average price at $1.94.

At the same time, the number of states where regular averaged more than $2.50 doubled to four, all in the western U.S.: Alaska, California, Hawaii and Washington. Prices rose 5 cents in Alaska and Washington this past week.

Despite having the highest average price for a gallon of regular at $2.80, California's statewide average has moved up by only a penny since late March. In comparison, the national average has increased 16 cents.

The supply of gas in Southern California could soon get a boost - and potentially lower pump prices or reduce increases from seasonal demand. An ExxonMobil refinery in Torrance, a Los Angeles suburb, is expected to resume full production later this month for the first since an explosion in February 2015 crippled output.

source Cars.com News http://ift.tt/1ZMODIF