National Gas Price Average to Drop 25-Cents from 2018 Peak Price
Hamilton, NJ, August 29, 2018 – AAA forecasts that the national gas price average will drop to $2.70 this fall and has the potential to drop even more. That is 14-cents less a gallon compared to today’s price and more than a quarter cheaper than this year’s recorded high of $2.97 set in May.
Though local drivers have not seen much change in the last month, with gas prices moving less than 10 cents in either direction, so far this year prices at the pump have been more expensive compared to last year. New Jersey and Pennsylvania and New York, drivers are paying just under 50 cents more per gallon year-over-year, while Delaware drivers are paying 54 cents more than in 2017.
“Cheaper-to-produce gasoline and relatively stable crude oil prices in August, combined with an anticipated drop in consumer gasoline demand post-Labor Day, means consumers will see savings when they fill-up at the pump this fall,” said Tracy E. Noble, manager of Public and Government Affairs for AAA Mid-Atlantic. “Several outliers can reverse this forecast, including crude oil prices, geopolitical tensions and the threat of a hurricane.”
ARTICLE CONTINUES AFTER SPONSORED CONTENT
ATLANTIC HIGHLANDS ANIMAL HOSPITAL
The holiday season is approaching quickly, and many families are looking to board their pets while they travel. It’s the perfect time to update vaccinations before holiday travels begin. Call today to schedule an appointment. (732) 291-4400 https://www.atlantichighlandsvet.com
2018 High Price
What will drive pump prices down this fall?
Part of the anticipated drop in fall pump prices is due to the switchover to winter-blend gasoline in mid-September. The difference between summer- and winter-blend gasolines involves the Reid Vapor Pressure (RVP) of the fuel. RVP measures how easily the fuel evaporates at a given temperature. The more volatile a gasoline (higher RVP), the easier it evaporates. Winter-blend fuel, which is cheaper to produce, has a higher RVP because the fuel must be able to evaporate at low temperatures for the engine to operate properly, especially when the engine is cold.
In addition, the arrival of fall historically means a drop in consumer gasoline demand as summer road trips and vacations subside.
What could prevent cheaper gas prices from coming to a pump near you?
- Crude Market Volatility: Much of 2018 has brought volatility to the domestic and global crude markets, as market watchers try to glean insight into forces that will shape global supply this fall. These forces include:
- Venezuela – major crude producer with a collapsing economy that could halt its crude production.
- Organization of Petroleum Exporting Countries (OPEC) – announced an increase in production this summer, but slower-than-expected production growth could contribute to higher crude prices.
- Geopolitical uncertainty worldwide, especially in the Middle East, could disrupt vital crude flows.
- Iran Sanctions: When President Trump announced that the U.S. would withdraw from the Iran Nuclear Deal in May, the decision sent the crude markets into upheaval. In August, the first round of re-imposed sanctions on the country, targeting Iran’s financial sector, went into effect and led to a brief uptick in crude prices. The next round of sanctions, will target Iran’s energy sector – including its crude exports – and will likely have a more sustained impact on crude prices.
- Updated Hurricane Forecast: The National Oceanic and Atmospheric Administration’s Climate Prediction Center predicts a total of 9–13 named storms (winds of 39 mph or greater of which 4-7 will become hurricanes) including up to two major hurricanes (winds of 111 mph or greater). The threat of a hurricane in the U.S. would cause pump prices to spike, likely regionally, due to constrained supply and delivery challenges.
In time for fall, AAA is releasing the 2018 Gas Watcher’s Guide with tips for conserving fuel, saving money and maintaining fuel efficiency. The Guide offers these tips – and many more – for motorists to keep in mind as they fill-up at the pump:
- If your vehicle’s engine does not require premium or mid-grade fuel, don’t buy it. Using anything other than regular grade is simply a waste of money.
- Don’t top off your gas tank. Stop filling after the automatic nozzle shuts off the second time.
- If you have to replace a gas cap, make sure it is the right one for your car. An ill-fitting cap will increase emissions and trigger the “check engine” light.
- Keep track of gas mileage. If you notice a sudden decrease in fuel economy, have your vehicle checked by a technician to ensure it is operating properly.
Motorists can find current gas prices at GasPrices.AAA.com and along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.