Yahoo Finance Gas prices have dropped below $3 per gallon in these 11 states
Gasoline prices are on a downward trend, with 11 states now averaging below $3 per gallon. The steady decline comes amid falling seasonal demand and use of less-expensive winter-grade gas.
Drivers in the states closest to the Gulf Coast's oil production and refineries are looking at average pump prices just under $3 per gallon, according to AAA data. Those include:
Alabama: $2.95
Arkansas: $2.95
Georgia: $2.85
Kentucky: $2.99
Louisiana: $2.92
Mississippi: $2.84
Missouri: $2.99
Oklahoma: $2.91
South Carolina: $2.93
Tennessee: $2.96
Texas: $2.80
"These states generally have the lowest excise taxes on gasoline...they are near refining centers where the gasoline is produced cutting down on distribution costs," Andy Lipow, president of Lipow Oil Associates told Yahoo Finance on Monday.
Meanwhile the national average for gasoline sits at $3.36, compared to $3.78 one year ago.
Even costly California has seen prices decline to $5.07 per gallon, down $0.60 from one month ago.
“Gasoline demand has struggled in recent weeks, falling not only due to the seasonal nature as Americans drive less as the weather gets colder, but it appears there may be some economic headwinds entering the equation as well,” Patrick De Haan, head of petroleum analysis at GasBuddy, said on Monday.
Gasoline consumption is expected to go down next year in the US as Americans continue to work remotely, fuel efficiency improves, and inflation stays high, according to the Energy Information Administration.
“Relatively high gasoline prices and persistently high inflation may be affecting consumer budgets and reducing discretionary driving,” reads the agency's latest energy outlook report.
Drivers should continue to see relief at the pump into the end of the year "if the price of oil does not suddenly spike due to global turmoil and if there is no major west Coast refinery outage," Andy Gross, spokesperson for AAA told Yahoo Finance on Monday.
Gasoline prices have been flat or falling since mid-September despite volatility in the oil markets during that period. Crude recently posted a third week of losses for the first time since May.
On Monday, West Texas Intermediate (CL=F) edged higher, trading just above $77 per barrel. Brent (BZ=F) crude gained fractionally, hovering above $82 per barrel.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre.
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