WEX Monthly PPG Average Report for July 2014
|Los Angeles, CA||$4.13||$4.15|
|New Orleans, LA||$3.39||$3.66|
|San Francisco, CA||$4.20||$4.28|
|St. Louis, MO||$3.44||$3.62|
|National Average (US)||$3.60||$3.86|
Gasoline Prices Drop Below $3.50 For First Time Since March
Gasoline prices fell almost every day during the month of June from $3.67 per gallon to $3.48. This is the lowest start to any August since 2010 when prices were $2.72 per gallon. Prices in every state have been down for the past 30 days with the exception of Idaho and Wyoming, which are up 4.3 cents per gallon and 1.6 cents per gallon, respectively, but they too should slide below $3.50 per gallon in the coming days.
Experts predict that barring any storms blowing through the Gulf Coast, gasoline prices should continue to fade for the remainder of the year. There are already a handful of stations with prices below $3.00 per gallon, but analysts believe that motorists will see thousands below that threshold by the end of September. Demand is down roughly 6% from its peak in 2007 thanks to more efficient fleets, telecommuting and an increase in urban living. Also, supplies are in good shape due to very few refinery problems and a ramp up in domestic crude production.
While most experts agree the remainder of the year will see lower prices, there may be a late August/early September bump as supplies of summer grade fuel get low. However, once September 15th arrives, refiners could switch to the easier-to-make winter fuel, and prices should plunge as they typically do.
Furthermore, diesel prices are at $3.83 per gallon and have been holding steady. Diesel prices may see an uptick as the heating oil season gets closer and supplies are stressed. A stronger economy could also put upward pressure on diesel.