U.S. consumer gas prices still inching lower

Feb. 20 (UPI) -- U.S. consumers are finally catching a break when they head to the gas station as retail prices follow the price of oil lower, market analysis finds.

Motor club AAA reported a national average retail price of $2.53 for a gallon of regular unleaded gasoline on Tuesday, a slight dip from Monday and about 1.5 percent, or 4 cents per gallon, less than this time last week.

Prices usually decline after the year-end Christmas and New Year holiday season as winter weather crimps demand. Crude oil prices, which make up a fraction of what consumers pay at the pump, hit multi-year highs last month, however, and upset the seasonal norm. The price of oil Tuesday was about $5 per barrel less than the peak in January.

The national average price for gas last year was $2.28 per gallon. This week, meanwhile, marks the second in a row that the price at the pump moved lower in general.

The West Coast market remains the most expensive in the country, though some of that is a result of higher fuel taxes imposed last year. California takes top honors in the Lower 48 with a state average Tuesday of $3.33 per gallon, only a fraction of a percent lower than last week. Washington state is close behind with a state average price of $2.99 per gallon, relatively unchanged from last week.

The Great Lakes market, meanwhile, remains the most volatile. Michigan, with a state average price of $2.43 per gallon for Tuesday, is posting an 8 percent drop in the price at the pump from last month.

Total U.S. inventory levels for both oil and gasoline have increased recently, supporting some of the relief, though the market is less bloated than it was at this point last year.

Patrick DeHaan, a senior analyst with GasBuddy, said U.S. shale oil production, which has set historic records in recent weeks, could limit how much crude oil prices rise in the weeks ahead, but a seasonal shift to a summer blend of gasoline and a regular maintenance period could upend the relief.

"The trend may not be over just yet, but oil prices have rebounded from their lows and are again strengthening, which may cut the party at the pump short in the weeks ahead," he added in a weekly comment.

U.S. President Donald Trump recently floated the idea of adding another 25 cents per gallon to the national fuel tax. Consumer gasoline prices on average went from contraction in December of 0.8 percent to an increase of 5.7 percent in January.