Gas Prices Have Fallen For the Past 7 Weeks — Will They Rise Again?

Making a payment for gas at a fuel station.
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There’s finally some relief at the pump, with gas prices continuing to fall for the seventh consecutive week.

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According to GasBuddy data, as of Aug. 1, the nation’s average gas price decreased 15.9 cents from the prior week, to $4.17 per gallon, while the national average was down 65.5 cents from a month ago — but $1.02 per gallon higher than a year ago. AAA pegged the national average slightly higher, at $4.19 per gallon as of Aug. 2, with California having the highest average, at $5.59.

In addition, the national average price of diesel has decreased 14.8 cents in the last week and stood at $5.27 per gallon as of Aug. 2, according to GasBuddy.

While the average gas prices are falling in every state, with almost 20 states having their averages decline to $3.99 or less, GasBuddy notes that some regions might still have some lingering supply issues, which could translate into higher prices.  

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“The outlook is for a continued drop in most areas, however, some supply tightness in areas of the Northeastern U.S. could push prices up slightly until inventories rise, or imports do,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a press release. “For now, Americans are seeing prices nearly 90 cents lower than their mid-June peak and are spending close to $330 million less on gasoline every day as a result. As long as oil prices hold at these levels or lower, we’ll see another decline in most areas this week.”

AAA also notes a potential hike in prices, as people might take advantage of the lower prices to fuel up, putting pressure on supply.

“We know that most American drivers have made significant changes in their driving habits to cope with high gas prices,” Andrew Gross, AAA spokesperson, said in a press release. “But with gas below $4 a gallon at nearly half of the gas stations around the country, it’s possible that gas demand could rise.”

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In fact, new survey data from AAA found that 64% of U.S. adults changed their driving habits or lifestyle since March, with the top three changes made indicated as driving less, combining errands and reducing shopping or dining out.

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About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.
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