NATIONAL REPORT — Gasoline demand has reached a new low.
According to the latest Energy Information Administration report, gas demand is at 8.3 million b/d — the lowest level since mid-June.
As demand dropped for a second week, gasoline supply levels are down nearly 3 million bbl to 231 million bbl. While consistently decreasing week-over-week, supplies also sit at a 3 million bbl year-over-year surplus.
"Typically lower supply levels translate into higher pump prices. However, even with consistent declines in gasoline stocks, that's just not the case right now," said Jeanette Casselano, AAA spokesperson. "Despite the steady supply dip, continued low levels of demand helped push the national gas price cheaper on the week."
Today's national gas price average of $2.19 is 3 cents less than last week and 2 cents more than a month ago. However, it is 37 cents cheaper than mid-September of 2019.
On the week, gas prices decreased or stabilized at the pump nationwide. States with the largest declines are paying 5 cents to 10 cents less, but the majority of state averages pushed cheaper by a few cents since last Monday.
The nation's top 10 largest weekly decreases are Ohio (10 cents), Kentucky (7 cents), Indiana (6 cents), Michigan (5 cents), North Carolina (5 cents), South Carolina (5 cents), Wisconsin (4 cents), Washington, D.C. (4 cents), Tennessee (4 cents) and Illinois (4 cents).
Among the nation's top 10 least expensive markets are Mississippi ($1.86), Texas ($1.87), Arkansas ($1.90), Louisiana ($1.90), Missouri ($1.90), Oklahoma ($1.90), Alabama ($1.91), South Carolina ($1.93), Tennessee ($1.94) and Kentucky ($1.96).
Mid-September is typically a point in the year that ushers in cheaper gas prices due to the switchover at gas stations from summer-blend to winter-blend, which is cheaper to produce.
"Motorists will see some cost savings at the pump with the switchover to winter-blend, but the price difference will be less than other years given how cheap prices have been this year already," Casselano noted. "However, hurricanes can always change any forecast for savings."