According to AAA, the nationwide average price of a gallon of gas today stands at $3.10. That price is the same as yesterday, one cent higher than a week ago and two cents lower than a month ago. In other words, gas prices are stable.
“Like watching dogs play chess, not much is happening,” said Andrew Gross, AAA spokesperson. “The national average for gas will likely maintain a glacial grind higher for the immediate future.”
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Despite the Arctic Cold Blast, Americans Are Driving More
Americans are using more gasoline than they did a year ago. The Energy Information Administration reports Americans burned about 8.1 million barrels per day the week ending January 20 (the most recent week for which data are available), up from 7.8 million in the same week last year when prices were hovering around $3.50.
Patrick De Haan, head of petroleum analysis for GasBuddy, thinks there’s still a chance prices could dip as low as $2.99 in the coming weeks.
“We remain just a nickel or so away from a $2.99 national average,” he says, and “we still have a low-level chance of getting there. But make no mistake — if we do see a national average of $2.99 per gallon, it won’t last long.”
Refiners switch to a more expensive blend of warm-weather gasoline in spring, which should push prices up soon. They’ve already started to “purge winter gasoline on the West Coast,” De Haan says.
Lower Oil Demand Countering Effects of Red Sea Conflict
The ongoing conflict in the Red Sea has forced some ships to take longer routes around South Africa, bypassing the shorter Suez Canal route. That rerouting slows oil delivery to many ports. Oil demand is lower worldwide as “a slowdown in global manufacturing has led to lower demand for oil,” according to independent financial research firm InvestorPlace. “The move toward renewable energy sources and increased energy efficiency are also contributing factors to this trend.”
Related: Red Sea Conflict Slowing Car Production
America’s drivers are slowly lessening their thirst for gasoline. Kelley Blue Book parent company Cox Automotive predicts that electric vehicles (EVs) could top 10% of new car sales this year for the first time.
However, with the average car on American roads lasting more than 12 years, it will take decades for EVs to overtake gas-powered vehicles on American roads.
