Crude oil supplies in the Gulf Coast continue to place downward pressure on the price of gasoline, however, prices are not in a free fall as demand reached its highest level since 2009, according to the Energy Information Administration.
More than 31.8 million Americans will fill their gas tanks and take a trip of 50 miles or more during Memorial Day weekend. Many of them will be delighted to see that gas prices continue decline. The national average for a gallon of regular unleaded gasoline fell 1 cent last week. The average price in Florida dropped 3 cents, while prices in Georgia and Tennessee fell 2 cents.
“AAA has forecast gas prices to be at or near last year’s levels during the Memorial Day holiday weekend,” said Mark Jenkins, spokesman for AAA – the Auto Club Group. “However, the margins of decline have been modest in the past week and prices could be slightly higher than a year ago. Even still, gas prices at these levels are not enough to keep people from traveling during the holiday.”
Gasoline prices have been declining since the beginning of the month, which is typical this time of year, following the conclusion of refinery maintenance leading up to the May 1 deadline to begin producing summer-blend fuel. With this transition now complete, falling averages are increasingly likely to reflect that gas prices have reached their peak for the spring in many parts of the country.