Gas prices in the U.S. have fallen by nearly 17 cents in the last three weeks, said a survey published on Sunday. The drop in gas prices is likely to continue, it predicts.
Diesel was also down by 10 cents a gallon in the past two weeks, and hovered around $4.05.
Drop in prices nationwide
The drop in gas prices was witnessed in all the states, and the price of gas was lowest in Jackson, Mississippi, where its average price was $3.41. The city with the highest average price of gas was Chicago, where it was available for $4.29 a gallon.
The Lundberg Survey of fuel prices said the average price of self-serve regular gasoline is $3.74 per gallon in the country. The national average price of mid-grade gas in the U.S. is $3.89 per gallon. The average price for a gallon of premium gas is $4.00.
The gas prices touched their highest this year on May 6, when it reached $4 per gallon across the nation. This was just 11 cents less than the record all-time high price of gas, which was set in July, 2009.
Drop likely to continue
The survey also predicted that the drop is likely to continue in the future.
The publisher of the survey, Trilby Lundberg said, “There’s a very good chance that pump prices will continue down, because there is an oversupply of gasoline at a time when our demand is weakening from unemployment conditions.”
Lundberg also cited the reports of a possible hike in supply by Saudi Arabia as the other probable cause of the drop.
She also said that the price of the crude oil is below $100 per barrel at present, and the closing price was $99.29 on June 10.
Lundberg said that the current price of crude oil is still a dollar higher than the last year’s price. She said that even without an increase in the supply from Saudi Arabia, “we will still see lower prices at the pump, because supply is high and demand is weak.... There’s a very good chance it will continue falling.”
Lundberg further said that the drop could have been even steeper had there not been a rise in the price of ethanol.