AAA forecasts continued drop in gasoline prices due to declining crude oil costs

Posted 8/29/19

When autumn leaves fall, gas prices could follow suit. AAA Northeast forecasts that the majority of motorists in Rhode Island and across the Northeast and Mid-Atlantic region will likely see potential savings of up to 25 cents a gallon this fall

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AAA forecasts continued drop in gasoline prices due to declining crude oil costs

Posted

When autumn leaves fall, gas prices could follow suit.

AAA Northeast forecasts that the majority of motorists in Rhode Island and across the Northeast and Mid-Atlantic region will likely see potential savings of up to 25 cents a gallon this fall compared with this summer’s prices. Cheaper crude oil, the expected decline in gasoline demand after Labor Day, and the transition to winter-blend gasoline are all poised to push prices lower at the pump.

“The cheapest gas prices of the year could be coming to a retail pump near you in the Northeast in the months ahead,” says Diana Imondi, AAA Northeast Manager of Public Affairs & Traffic Safety. “Cheap crude oil and the post-summer demand slump are among the factors that will contribute to this major shift in savings.”

Since Memorial Day, gasoline stocks in the region have fluctuated between 58-65 million barrels in the Energy Information Administration’s weekly reports. EIA’s report for the week ending Aug. 2 showed a 3 million-barrel deficit compared to the beginning of the third quarter in 2018. Part of the year-to-year deficit stems from the pending closure of Philadelphia Energy Solutions, the largest refinery on the East Coast. This would usually lead to a spike in gas prices, but gasoline imports are easing supply concerns and keeping retail gasoline prices moving lower—although any further supply disruptions could cause prices to spike temporarily.

In the Northeast and Mid-Atlantic region, Connecticut, New York, Pennsylvania, and Washington, D.C. traditionally post the most expensive price averages, while Virginia and Tennessee log the lowest.

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