Gas Prices Continue to Fall

Tuesday, August 23rd, 2022 -- 10:01 AM

Stable global oil prices and modest domestic demand for gasoline led pump prices to fall a nickel in the past week to $3.90.

“Drivers are now benefiting from gas prices that are $1.11 less than their peak in mid-June,” said Nick Jarmusz, director of public affairs for AAA – The Auto Club Group. “But now we need to keep an eye on the weather as hurricane season arrives. These storms can affect prices by disrupting oil production in the Gulf of Mexico and impacting large coastal refineries.”

AAA finds that drivers are making significant changes to cope with high pump prices. In a recent survey, almost two-thirds of U.S. adults say they have changed their driving habits or lifestyle since March. Drivers’ top two changes to offset high gas prices are driving less and combining errands.

According to data from the Energy Information Administration, gas demand rose slightly from 9.12 million b/d to 9.35 million b/d last week, which is nearly identical to this time last year. Total domestic gasoline stocks decreased by nearly 5 million bbl to 215.7 million bbl.

Although gasoline demand has risen and supplies have tightened, easing oil prices have helped lower pump prices. If oil prices edge lower, drivers will likely continue to see falling pump prices.

Today’s national average of $3.90 is 51 cents less than a month ago but 74 cents more than a year ago. For Wisconsin the average price on Sunday was $3.67, $3.68 on Monday, $3.68 a week ago, $4.13 a month ago, and $3 a year ago.

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