Gas Prices Down 30 Cents Since Spring 2012

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AAA MONTHLY GAS PRICE REPORT: MARCH TRENDS AND APRIL OUTLOOKS

Gas Prices Nearly 30 Cents per Gallon Less Expensive than Last Spring·        

The national average price of gasoline decreased during March for the first time in 10 years, and gas prices now average nearly 30 cents per gallon less than a year ago. The national average should remain less expensive than last year’s prices this spring.

Today’s national average is $3.63 per gallon, which compares to $3.92 per gallon a year ago. The national average decreased 15 cents per gallon (3.9 percent) last month, which was the first month-over-month decline for March since 2003, when the average decreased by one cent per gallon.

“It is very unusual for gas prices to decline in early spring like we have seen this year,” said Jenny M. Robinson, Manager of Public and Government Affairs for AAA Mid-Atlantic. “An increase in refinery production and lower oil prices in early March have combined to provide rare falling prices for motorists in comparison to recent years.”

The national average reached $3.79 per gallon on Feb. 27, which currently is the highest average price for 2013. Since that time the national average has dropped 29 out of 33 days.·         The national average increased 34 cents (10 percent) per gallon from the beginning of the year ($3.29) through the end of the first quarter of 2013. Last year, gas prices increased nearly twice as much during the first quarter with a rise 65 cents (20 percent) per gallon.

This week marks the one-year anniversary of the 2012 peak in gas prices, when the national average reached $3.94 per gallon on April 5 and 6. Gas prices peaked in 2011 at $3.98 per gallon on May 5.

Gas prices declined in March as many refineries resumed normal operations following the completion of seasonal maintenance. The price of West Texas Intermediate (WTI) crude oil also remained relatively low for much of the month. Gas prices spiked in late January through February primarily because of supply concerns with refineries in February processing the lowest amount of crude oil in nearly two years due to extensive maintenance and facility upgrades.Gas Prices in April Should Remain Less Expensive than Recent Years.

Gas prices in April should remain less expensive than in recent years because oil is cheaper and refinery production is rising. The price of WTI crude oil is about $6 per barrel less than a year ago, while refinery utilization has increased by about five percent since early March, according to the federal Energy Information Administration.

“AAA has no record of gas prices ever peaking in February, and it is too early to say whether prices may have hit a high for the first half of the year,” continued Robinson. “While it is possible that gas prices may surge briefly again this spring, the national average should remain less than last year’s high of $3.94 per gallon. Yet even with the recent declines, we cannot lose track of the fact that gasoline remains very expensive for many American motorists.”

Much of the country must transition to more expensive summer-blend gasoline and there is still refinery maintenance left to complete, which could result in a brief surge in gas prices.

AAA expects the average price of gas in 2013 will be less than last year as a result of increased domestic production and continued low demand.Fewer Americans Paying $4 per Gallon for Gasoline.

Motorists in only two states are paying an average of more than $4 per gallon for gasoline today, which includes Hawaii ($4.38) and California ($4.04). This contrasts with a month ago when 60 million Americans (20 percent) lived in a state where gas prices averaged more than $4 per gallon.

The five states with the highest gas price averages today include: Hawaii ($4.383), Calif. ($4.044), Alaska ($3.998), N.Y. ($3.893) and Conn. ($3.873). The five states with the cheapest gas price averages today include: Wyo. ($3.328), Mont. ($3.358), S.C. ($3.411), Tenn. ($3.425) and Ark. ($3.436).

Learn how to save money on gas with a few simple tips from AAA.