facebook
twitter
rss
account
search
search
 

U.S. gas prices should continue drop, AAA says

Refinery output, production keeping gas prices lower.
By Daniel J. Graeber   |   Aug. 1, 2014 at 10:17 AM   |   Comments

| License Photo
WASHINGTON, Aug. 1 (UPI) -- Retail gasoline prices in the United States should be lower for August in part because of higher refinery output, a spokesman for AAA said.

The motor club reports a national average price for a gallon of regular unleaded gasoline for Friday of $3.51, nearly 3 cents lower than one week ago and 12 cents cheaper year-on-year.

Early season prices had increased in part because of the Sunni-led insurgency in Iraq. On the domestic front, AAA spokesman Avery Ash said gasoline prices were lower in the United States because of the increased production and higher refinery output.

"Falling gas prices are nearly the opposite to what we usually see this time of year," he said in a statement Thursday. "Refineries are running at full tilt and there is more than enough gasoline in the market, which has helped bring down prices despite multiple overseas conflicts."

Ash said gas prices should continue to cost less than usual for this time of year so long as oil costs remain stable and refinery production remains strong.

July and August are typically the busiest driving months of the year. Gasoline prices have decreased in August in three of the past five years.

"The biggest threat to continued falling prices would be a major hurricane striking the U.S. Gulf Coast," Ash said. "Prices also could rise or remain flat if refineries cut back on production or if there are any major refinery outages."

Follow @dan_graeber and @UPI on Twitter.
Contact the Author
© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Most Popular
1
Tony Hayward: Kurdish oil sector open for business Tony Hayward: Kurdish oil sector open for business
2
Textron's G-CLAW on target in live-fire demonstration Textron's G-CLAW on target in live-fire demonstration
3
Pay up, Gazprom tells Ukraine Pay up, Gazprom tells Ukraine
4
$3 gas could make a comeback $3 gas could make a comeback
5
Starbucks testing smaller Frappuccinos Starbucks testing smaller Frappuccinos
Trending News
Video
x
Feedback