Come this fall, the price of gasoline could fall as much as 25 cents a gallon.
AAA Northeast forecasts that the majority of motorists in Connecticut 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 are likely coming to a retail pump near you in the months ahead,” Alec Slatky, Director of Public and Government Affairs at AAA Northeast. said in a release. “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.