Drivers paid the lowest averages for the Christmas holiday since 2009, and pump prices continue to hover around the $2 benchmark. Retail averages have fallen for 45 of the past 52 days, and despite prices moving higher by fractions of a penny on the week, today’s average price of $1.999 is the lowest for this date since the Great Recession. Monthly and yearly discounts persist, and consumers are saving five cents per gallon versus one month ago, and 30 cents per gallon versus this same date last year.
Leading into 2016, the national average is expected to continue to slide because supply should continue to outpace demand. Gas prices typically fall during this time of year as demand for gasoline decreases, and many motorists will remember the fourth quarter of 2014 when pump averages tumbled from $3.33 on October 1 to $2.26 on New Year’s Eve. While seasonal price declines are again reflected across much of the country, prices on the West Coast have moved higher following supply issues in California. Earlier in the year, ExxonMobil’s Torrance, CA refinery unexpectedly went offline, and as a result, prices spiked in the region. Ongoing and unexpected refinery maintenance has kept production from returning to normal levels, and new problems have tightened supply within the region and once again sent prices higher. This regional challenge could keep the national average higher than we would otherwise see, and contribute to volatility to close out the fourth quarter of 2015.