Pump prices are holding relatively steady and remain at their lowest levels for this time of year since 2005. Today’s price of $2.31 per gallon represents a savings of three cents per gallon on the week and two cents per gallon on the month. Year-over-year drivers continue to benefit from noticeable discounts in the price to refuel their vehicles, and prices are down 47 cents per gallon versus this same date last year.

This year’s summer driving season is likely to set new records for both gasoline demand and vehicle miles traveled, and the latest data from the U.S. EIA shows that gasoline demand is currently at an all-time high. Strong demand can put additional pressure on refineries, and their ability to sustain output and keep gasoline flowing to markets directly impacts the price consumers pay at the pump. However, refineries are reportedly increasing output and gasoline supply has more than kept pace with growing demand. In fact, the refinery utilization rates reached its highest level since April and gasoline inventories posted an increase in the face of these record numbers. Gas prices have fallen for 16 consecutive days, and if the market can remain adequately supplied drivers are likely to continue paying prices unseen for the summer months in more than a decade.

Quick Stats

• The West Coast leads the market and is posting some of the nation’s highest prices at the pump, led by: California ($2.90), Hawaii ($2.79), Alaska ($2.66), Washington ($2.65) and Nevada ($2.55)
• The nation’s least expensive markets are: South Carolina ($2.00), Mississippi ($2.06), Arkansas ($2.07), Alabama ($2.09) and Oklahoma ($2.09).

Southeastern states continue to dominate the rankings of the nation’s least expensive markets for gas. South Carolina ($2.00) is the nation’s least expensive market for retail gasoline, is followed by regional neighbors Mississippi ($2.06), Arkansas ($2.07), and Alabama ($2.09) in the rankings. Gas prices have moved by +/- 3 cents per gallon in the region week-over-week and are expected to remain on the lower end of the spectrum in the near term.

A wildcard for gas prices in the region is the Atlantic Hurricane Season. Prices could become volatile due to severe weather which could impact both production and distribution.

Release from AAA Fuel Gauge Report