U.S. gas prices could drop 30 cents by Christmas, AAA says
National gas prices fell 19 cents in September, the largest drop since October 2012, AAA said Monday, and if the downward trend continues, gas prices could drop an additional 30 cents by Christmas.
The U.S. average gas price is now at $3.40 a gallon, the lowest price since January.
“Most drivers are paying the lowest gas prices in more than eight months due to abundant gasoline supplies, the end of the summer driving season, lower oil costs and the switchover to winter-blend gasoline,†said Avery Ash, AAA spokesman, in a statement.
Looking ahead, AAA said it expects further drops in the price through the fall and winter. In California, however, it’s unclear whether motorists will see similar declines. California typically has higher prices because it has a limited number of refineries, leaving it subject to price surges when problems arise.
California also has higher taxes on gas compared with other states.
Jeffrey Spring, a AAA spokesman based in California, said California prices haven’t fallen as steeply as U.S. prices. The average price of gasoline in California is $3.92, down from $3.99 a week ago.
In Los Angeles, the average price is $3.94, down from $4.02 a week ago, Spring said.
Absent any disruptions in the supply chain, California should see a drop in prices, Spring said.
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