AAA reports a national average price for a gallon of regular unleaded gasoline at $2.62 for Thursday, about 5 cents less than one week ago and more than 10 cents less than this date in July.
The motor club said in a mid-week gauge of the retail gasoline market the price at the pump has dropped at its fastest rate since January because of continued weakness in the crude oil market and improved refinery operations.
As of Thursday, the national average price for gas has dropped 17 straight days.
“It feels good to see gas prices drop during the middle of the busy summer driving season,” AAA spokesman Avery Ash said in a statement. “Millions of people are hitting the roads right now and these gas savings should make their trips more affordable.”
The motor club notes, however, that low fuel costs have translated to higher demand, up 6 percent in July from last year. High demand could crimp supplies, which could arrest some of the declines in gasoline prices.
Nevertheless, AAA said it expected gasoline prices will drop another 15 cents per gallon in the short-term nationally. If crude oil prices collapse further, drivers will reap the benefits as every $12 drop in crude oil prices translates to a 29 cent drop in gasoline prices.
Brent crude oil traded at $49.55 early Thursday, down about $14 since the start of July.
“The recent price declines are hopefully just a precursor of much bigger savings to come at the pump,” Ash said. “We could see many parts of the country make another run towards $2 per gallon by the end of the year if everything keeps running smoothly.”
