If you feel like summer is coming to close with a little more change in your pocket this year, it might be that this summer will see the lowest gas prices since 2004, according to information from officials at the Federal Energy Administration.
While not everyone in the country is going to see the same dip in fuel prices, gas hit $2 a gallon in New Jersey this weekend, with discount prices still often below that mark. In fact, even after a slight uptick last week, it is easy to find gas below $1.80 a gallon in some parts of the country. This is quite the departure from typical gas price patterns that level off and drop at the end of the summer, when prices normally begin to rise again.
Fuel industry expert Tom Kloza—of the Oil Pricing Information Service—had originally predicted in April, that oil refineries would pump out more gas this summer, leaving a bit of a glut that which actually met consumer demand. Typically, oil is a bit undersupply during the heavy traffic of the summer season, which often results in price hikes.
Now, prices during Labor Day Weekend may be slightly higher than they were during the 4th of July, but these prices are still down over recent years. As a matter of fact, HowMuch.com estimates that $50 worth of gas, this weekend, will get a roadtripper much farther in 2016 than in the same weekend over any of the past five years. Specifically, $50 will get a driver from New York to Columbus, Ohio.
All of this, of course, is the result of teetering crude oil prices, with prices ranging from $47 to $48 a barrel, settling at $47.01 on the New York Mercantile Exchange. Similarly, wholesale gas fell from an average $1.51 per gallon last week to open today at 41.49, according to NASDAQ.
Of course, this is an average national trend, which means that prices—highs and lows—will vary depending on the city and the week.
But Kloza advises that prices will continue to fall as summer ends; as traffic slows, demand will decrease, of course. Furthermore, he says that we can expect prices to remain low—and maybe even fall a little more—as we approach the campaign seaso