Gasoline Is Cheaper Now Than A Year Ago — And Could Fall Below $3

By CNBC
Posted on 12/08/22 | News Source: CNBC

Gasoline prices are now cheaper across the U.S. than they were a year ago, and the price per gallon could fall below $3 for most Americans by the end of the year.

According to AAA, the national average for a gallon of unleaded gasoline was $3.329 on Thursday, below the $3.343 a year ago, before Russia’s invasion of Ukraine. Unleaded gasoline was at a record $5.01 per gallon June 14 and stayed high through the summer and fall.

Gas prices fell 15 cents per gallon in the past week and are down from $3.80 a gallon a month ago.

“For the next 55 days, it looks good for consumers but ugly for refiners,” said Tom Kloza, global head of energy analysis and co-founder of OPIS, formerly Oil Price Information Service. “They’re running refineries so hard because of the diesel shortage that they’re making too much gasoline. We’re running about 7% behind last year in terms of demand.”

Kloza expects to see gasoline below $3 a gallon for most Americans, before prices start to tick back up when refiners begin to produce summer blends in February. “You just can’t run refineries at these high rates and make too much gasoline for the summer because there’s no place to put it. I think we see the lowest prices of 2023 in the next 55 days,” he said.