U.S. consumer demand for gasoline is slowing down and that should start bringing relief to travelers ahead of the next major holiday, analysts said.
UPI reported that motor club AAA reported a national average retail price of $2.83 for a gallon of regular unleaded gasoline, about 2 cents less than one week ago. Barring a few outliers, most state averages are on a slow, but steady decline.
Jeanette Casselano, a spokeswoman for the motor club, said prices are following a slow decline in consumer demand, a trend that should keep a lid on the price at the pump.
“The national average is expected to keep moving lower, especially with the switchover to lower grade gasoline in September,” she said in a statement.
After Sept. 15, refiners start making a winter blend of gasoline, which is less expensive to make because there are fewer processing steps necessary compared to the summer blend. At their lowest price in more than 100 days, that should lead to even more discounts at the pump.
Patrick DeHaan, the lead petroleum analyst at GasBuddy, said in a separate statement that expectations of a slowdown in global economic growth are keeping oil prices from spiking, bringing relief to consumers as well.
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