AAA: Retail Gas Prices Could Fall By 25 Cents/Gallon this Fall

Cheap crude oil and post-summer demand slump...
(Pixabay photo)

When autumn leaves fall, gas prices could follow suit.  AAA Northeast forecasts that the majority of motorists in Massachusetts and across the Northeast and Mid-Atlantic region will likely see potential savings of up to 25 cents a gallon this fall compared with this summer’s prices. Cheaper crude oil, the expected decline in gasoline demand after Labor Day, and the transition to winter-blend gasoline are all poised to push prices lower at the pump.

“The cheapest gas prices of the year could be coming to a retail pump near you in the Northeast in the months ahead,” says Mary Maguire, Director of Public and Legislative Affairs.  “Cheap crude oil and the post-summer demand slump are among the factors that will contribute to this major shift in savings.”

Since Memorial Day, gasoline stocks in the region have fluctuated between 58-65 million barrels in the Energy Information Administration’s weekly reports.  EIA’s report for the week ending August 2 showed a 3 million barrel deficit compared to the beginning of the third quarter in 2018.  Part of the year-to-year deficit stems from the pending closure of Philadelphia Energy Solutions, the largest refinery on the East Coast.  This would usually lead to a spike in gas prices, but gasoline imports are easing supply concerns and keeping retail gasoline prices moving lower—although any further supply disruptions could cause prices to spike temporarily.

In the Northeast and Mid-Atlantic region, Connecticut, New York, Pennsylvania, and Washington, D.C. traditionally post the most expensive price averages, while Virginia and Tennessee log the lowest.

State

Year-to-Date Average

2019 Highest Gas Price Average

2019 Lowest Gas Price Average

Connecticut

$2.75

$3.01 (May)

$2.44 (February)

Delaware

$2.45

$2.80 (April)

$2.08 (January)

Maine

$2.56

$2.83 (April)

$2.23 (February)

Maryland

$2.56

$2.83 (April)

$2.20 (January)

Massachusetts

$2.63

$2.85 (May)

$2.38 (February)

New Hampshire

$2.52

$2.76 (May)

$2.23 (February)

New Jersey

$2.66

$2.93 (May)

$2.32 (February)

New York

$2.57

$2.97 (May)

$2.46 (February)

Pennsylvania

$2.79

$3.05 (May)

$2.47 (February)

Rhode Island

$2.61

$2.87 (May)

$2.31 (February)

Tennessee

$2.36

$2.61 (May)

$1.96 (January)

Virginia

$2.38

$2.64 (May)

$2.02 (January)

AAA Northeast is a not-for-profit auto club with 64 offices in Rhode Island, Massachusetts, Connecticut, New Jersey, New Hampshire and New York, providing more than 5.7 million local AAA members with travel, insurance, finance, and auto-related services.


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