Gas prices expected to decline - KWWL - Eastern Iowa Breaking News, Weather, Closings

Gas prices expected to decline

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WATERLOO (KWWL) -

Americans are expected to pay the lowest fuel prices this Labor Day Weekend since 2004.

Today’s national average price of gas is $2.44 per gallon, which is 99 cents per gallon less than a year ago.

U.S. consumers should save more than $1 billion on gasoline over the holiday weekend compared to 2014, with many drivers saving about $15-$25 on every trip to the gas station.

 “Americans should find good deals on gas prices in most parts of the country heading into the busy Labor Day weekend,” said Avery Ash, AAA spokesman. “It is unbelievable that drivers are ending their summer vacations with the lowest gas prices for this time of year in more than a decade.”

Average U.S. gas prices have dropped about 37 cents per gallon since hitting a 2015 peak price of $2.80 on June 15.

Average gas prices have dropped due to lower crude oil costs and abundant petroleum supplies.

Gas prices averaged $2.60 per gallon in August, which was the lowest average for the month since 2005. The average price in August was about 15 cents per gallon less than in July.

Gas prices remain relatively high compared to the cost of crude oil. WTI oil prices closed at $46.25 per barrel Wednesday, which was similar to the cost of oil in January.

Nevertheless, average gas prices are about 41 cents per gallon more expensive than the lowest daily average in January.

Gas prices are higher than would otherwise be expected due to high demand and ongoing refinery problems, along with the higher cost to produce summer-blend gasoline that is required in many areas.

When the market is running smoothly, gas prices generally drop nearly 2.4 cents per gallon for every $1 per barrel change in the cost of crude oil.

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