WEX Monthly PPG Average Report for September 2014
|Los Angeles, CA||$3.82||$4.05|
|New Orleans, LA||$3.13||$3.58|
|San Francisco, CA||$3.95||$4.23|
|St. Louis, MO||$3.23||$3.49|
|National Average (US)||$3.38||$3.76|
Gasoline Prices Heading Lower
Retail gasoline prices are averaging $3.30 per gallon nationally, but experts are predicting dramatic declines over the next several weeks. Some analysts are even predicting that the national average could fall below $3.00 per gallon by Thanksgiving. Several factors are behind the forecast. They include:
- A large drop in international crude prices which have been falling due to perceived slowdowns in the Chinese economy and widespread discounting by many exporting countries
- The perception that Saudi Arabia will not cut production and that OPEC cannot maintain a supply threshold that would cause an increase in prices
- Ethanol prices continue to fall which is 10% of what goes into a gallon of gas in most areas of the United States
- October and November tend to see reduced demand for gasoline in the United States.
Meantime, diesel prices have edged down to $3.73 per gallon, roughly 18 cents per gallon below last year. The drop in crude is primarily responsible for diesels decline. Typically, diesel is pressured higher this time of year in anticipation of heating oil season.