The price of gasoline surpassed $5 per gallon at a Manhattan gas station in New York City in March. File Photo by John Angelillo/UPI | License Photo
Aug. 8 (UPI) -- Gas prices have fallen for nearly two months straight as drivers avoid the pump even during the peak of summer driving season.
The national average for the price of gas fell to $4.059 on Monday, falling nearly $1 since prices hit an all-time peak of $5.016 in June, according to data from AAA.
Gas prices in South Carolina were the cheapest on Monday at $3.591 per gallon, about 40 cents higher than the national average a year ago.
California and Hawaii are the only states were the average price of gas per gallon at the pump remains above $5 with Californians paying an average of $5.446, according to AAA.
"Oil is the primary ingredient in gasoline, so less expensive oil is helpful in taming pump prices," AAA spokesperson Andrew Gross said in a news release.
"Couple that with fewer drivers fueling up, and you have a recipe for gas prices to keep easing. It's possible that the national average will fall below $4 this week."
Data from the Energy Information Administration cited by AAA shows that gas demand dropped from 9.25 million barrels per day to 8.54 million barrels last week as the total domestic gasoline supply rose by 200,000 barrels of crude oil to 225.3 million barrels.
"If gas demand remains low and the supply continues to increase alongside falling oil prices, drivers will likely continue to see pump prices drop," the analysis from AAA reads.
Patrick De Haan of GasBuddy said Friday that gas prices have declined for 50 days straight since reaching record-breaking levels in the spring and early summer months.
The results of a survey released Monday by the Federal Reserve Bank of New York showed that consumers expect the price of gas to rise at a rate of about 1.5% in the next year, a sharp increase from expectations in June when gas prices reached record levels.