Gas Glut Means Lower Prices at the Pump
(NEW YORK) -- The weather is cooling down and so are gas prices.
“The reality is that gasoline is very plentiful,” senior oil analyst Tom Kloza of GasBuddy.com says. “We’re about 30 cents-plus below where we were a year ago and we’re going to see lower prices in the fall.”
The U.S. Energy Department says the price of regular unleaded gas has dropped another 5 cents a gallon nationwide in the past week. California is now the only state where drivers are paying more than $4 a gallon.
“It’s not that expensive given where it was last year and the year before. You have to go back to 2010 to find numbers this cheap,” Kloza says.
Rising U.S. oil production is one reason for the strong supply of gasoline. Another is falling demand: More people are driving newer and more fuel efficient cars and light trucks.
With an increase in auto sales, “the vehicle fleets are turning over at a faster rate, and new vehicles are coming in at 25 miles-per-gallon average,” Kloza tells ABC News.
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