We’ve got happy campers at both the gas and diesel pumps as the price per gallon continues to push lower.
Patrick De Haan, head of petroleum analysis at GasBuddy, reports the national average for gas prices has declined for six straight weeks. Some areas of Wisconsin see below $3 per gallon for gas. The statewide average is $3.06, falling 36 cents in the past month.
The statewide for diesel is about $3.47 per gallon in Wisconsin, the lowest in over two years.
De Haan tells Mid-West Farm Report oil prices are the primary culprit, trading below the $70 per barrel mark due to slowing economies in both the U.S. and China. U.S. oil production has also increased in the past few years, which has boosted supply.
We’ve all heard it — claims that the presidential election is the cause for lower gas prices. De Haan says that is a myth. Falling gas prices are seasonal as driving declines in the autumn. He says if the election was in the spring, gas prices would go up as Americans drive more in the warmer weather. De Haan adds that higher ethanol blends in the winter also push gas prices lower.
As we move into the fall — gas prices are projected to stay low through year-end. But diesel prices will pick up as heating oil demand rises into the winter, De Haan says. But the overall sentiment is we’ll experience the lowest prices we’ve seen since the pandemic.
Factors that could change the outlook include potential violence in the Middle East and hurricane season, says De Haan.
When it comes to fuel prices, weather is a big influencer, especially when tropical storms come through refinery territory. De Haan says Tropical Storm Francine is an example of problematic weather. Luckily, this storm is not projected to be major. There could be some flooding damage, but nothing big enough to send fuel prices soaring. September is hurricane season in the Gulf. This is where most of the U.S. oil refineries are located.
