AAA Says Gas Prices to Continue Falling Through End of Year

WASHINGTON – AAA released its fuel prices report for November along with its outlook for the rest of the year. According to AAA, the national price of gasoline is set to keep falling through New Year’s Day. The average price of a retail gallon of gasoline fell 11.9 cents in November, which is the fifth monthly drop in prices in 2012. The national average on Dec. 3 of $3.387 per gallon is the lowest since July 12.

Gas prices have fallen close to 50 cents per gallon since Sept. 14, which is the day before the U.S. began transitioning to winter blend gasoline. AAA is predicting that gas prices will keep falling and end up at an average between $3.20 and $3.40 a gallon by New Year’s Day.

In areas hit by Hurricane Sandy, gas prices have fallen as gas stations are receiving regular fuel shipments. Average gas prices in New Jersey have fallen 18 cents per gallon, in New York City they have fallen 21 cents per gallon, and 26 cents per gallon in Long Island, compared to peak prices right after the storm.

On a regional basis, during the last week prices in 48 out of 50 states have fallen, with the largest drops in states in the middle of the U.S. The largest drops occurred in Ohio, with a drop of 15.4 cents, Michigan, at a 12.3-cent drop, and Indiana, at a drop of 11.7 cents. The only states where prices didn’t fall were Missouri and Kansas.

The five states with the highest prices are Hawaii, at $4.047; New York, at $3.863; Alaska, at $3.792; Connecticut, at $3.782; and California, at $3.698. The five states with the lowest prices are Missouri, at $3.140; Texas, at $3.143; South Carolina, at $3.154; Oklahoma, at $3.154; and Tennessee, at $3.161.

Oil prices have gone up slightly, with West Texas Intermediate settling at $89.09 per barrel on the NYMEX.

AAA's average retail gasoline price information comes from OPIS and WEX (formerly Wright Express).