According to AAA, gas prices have been falling since mid-June as demand has fallen to levels not seen since the early days of the pandemic.
Prices have fallen continuously since June 14, when the average price hit a record high of $5.01 per gallon in the US
On Thursday, the national average price for a gallon of regular gasoline fell eight cents to $4.13.
New data from the Energy Information Administration (EIA) shows that gas demand fell from 9.25 million barrels per day to 8.54 million barrels per day last week.
That’s 1.24 million barrels per day lower than last year and “in line with demand at the end of July 2020,” when there were widespread virus-related restrictions and fewer people on the road, according to AAA.
“Despite the steady decline in pump prices, drivers still seem to be adjusting their driving habits to contend with higher-than-usual prices,” AAA spokesman Andrew Gross told TAUT Business on Thursday.
The latest demand figures support a recent AAA survey that found that 64% of drivers had changed their driving habits or lifestyle since March to offset high prices at the pump.
Still, there may be some good news for motorists.
Recently, crude oil prices have fallen as concerns about weaker demand for gasoline persist.
According to AAA, pump prices are likely to continue to fall if gasoline demand remains low and crude oil prices do not rise.
Although the Organization of the Petroleum Exporting Countries (OPEC) and its allies, also known as OPEC+, plan to increase production by just 100,000 barrels per day in September, after increasing production by 648,000 barrels per day in July and August. increased, it is unlikely that this will happen. a significant impact on price, according to AAA’s report.
“The slight increase is unlikely to have a significant price effect, especially if demand continues to fall,” AAA said.