The road to Memorial Day typically pumps up gasoline prices as motorists gear up for summer travel, but USA Today reports that formula is shifting into reverse this year
The price of a gallon of regular fell four cents a gallon in the last week alone. The Energy Information Administration reported Monday that the nationwide average price is $2.37, down from $2.41. A few pennies a gallon may not sound like a lot, but the savings add up quick— $1.50 per fill-up of a 15-gallon tank for every 10-cent drop.
Gasbuddy.com reports the lowest price in Baton Rouge is $1.93 per gallon at Costco while the average price per gallon is $2.12.
When 2017 began, analysts thought gasoline might approach $3 per gallon by Memorial Day, but that prediction was off. Instead, the number of U.S. gas stations selling fuel for less than $2 per gallon has nearly doubled since last week to 5,177, according to GasBuddy.com.
“This is usually ripe territory for prices to be skyrocketing,” GasBuddy.com analyst Patrick DeHaan says. “But we may dip quite a bit in the next week or two. It’s a boon to motorists that are seeing a consistent decline for the last few weeks just ahead of Memorial Day weekend.”
With full employment, stock market hitting records and a newfound consumer preference for SUVs and other gas-thirsty family vehicles, expect motorists to go full throttle into the travel season.
“My hunch is it’s still going to be awfully congested in the summer. We’re still going to use a lot of gas,” says Tom Kloza, an oil price information service analyst.
