Good News: Gas Prices At The Pump Might Continue To Drop In The Near Future

According to a new report, fuel prices aren’t just going down but they might fall considerably further in the near future. As Labor Day marks the end of the traditional driving season the nation has seen a dramatic dip in fuel prices already. Here’s what to look out for in the coming weeks and months.

Back in June, the national average fuel price was $5.02 per gallon. That number has been declining for more than two months though and CNBC is reporting that it expects the trend to continue. As of Monday, the average price at the pump across the country was $3.79 per gallon.

Patrick DeHann, GasBuddy’s head of petroleum analysis, says that the decline “is going to keep going for now.” He even believes that much lower prices are within reach. “I’m hopeful we can get to $3.49 between Halloween and Thanksgiving… I still think we could see some states drop under $3, primarily Oklahoma, Texas by the end of the year, if not earlier,” he said.

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Should prices actually dip that low it would be the first time since February of this year. The national average hasn’t dipped below $3 since May of 2021. Southern states benefit from a significant refining capacity in the Gulf Coast region. At the same time, other states, like California, saw prices rising slightly on Friday. Ultimately, a slowdown in demand, itself a result of higher fuel prices, has led, in part, to lower prices across the nation.

The drop in fuel prices could have the opposite effect on some used-vehicle pricing. Earlier in the year as gas prices spiked large SUVs and trucks in the used market saw a cooling off with regard to value. The rest of the used car market has continued to flourish so only time will tell whether or not less fuel-efficient vehicles see a value bump.

At the same time, it’s plausible that this break from expensive fuel is only temporary. A surprise price increase in oil or a natural disaster, such as a hurricane in the Gulf Coast, could result in much higher gas prices. For now, consumers can enjoy the lower prices while we await whatever the future has to bring.