Gas Prices Decrease as Demand Dips

WASHINGTON, D.C. — Lessening demand for fuel after the peak of holiday road travel could be responsible for a general decline in gas prices.

The national average for a gallon of regular gas fell 3 cents last week to $3.09. This is 15 cents less than a month ago and 17 cents less than a year ago, reported AAA.

"January is a bit of blah time of year, and gas prices are in the doldrums as well," said Andrew Gross, AAA spokesperson. "Barring some unexpected shock to the global oil market, gas prices will likely shuffle up and down a few cents for a while."

[Read more: Gas Prices Expected to Fall in 2024]

The 10 states that saw the largest weekly decreases in their average gas prices are Ohio (14 cents per gallon), Indiana (10 cents), Florida (9 cents), Delaware (8 cents), Michigan (8 cents), Maryland (7 cents), Wyoming (7 cents), Tennessee (6 cents), Idaho (6 cents) and Nebraska (6 cents).

The current top 10 most expensive markets in the country are California ($4.71 per gallon), Hawaii ($4.66), Washington ($4.11), Nevada ($3.94), Oregon ($3.76), Alaska ($3.62), Pennsylvania ($3.38), New York ($3.34), Arizona ($3.33) and Vermont ($3.28).

Gas demand plummeted from 9.17 million to 7.95 million barrels per day over the last week, according to new data from the U.S. Energy Information Administration. At the same time, total gasoline stocks increased significantly, rising from 10.7 million barrels to 237 million barrels. 

The combination of weak gas demand and increased supply has pushed pump prices lower, but rising oil prices have limited price decreases, according to AAA. If gas demand stays weak, prices at the pump will likely trickle downward.

At the close of the formal trading session on Jan. 3, West Texas Intermediate (WTI) increased by $2.32 to $72.70. WTI oil is another benchmark used by oil markets, representing oil produced in the United States.