Falling Gas Prices in July Indicate Surprising New Trend

The AAA Fuel Gauge Report now lists the average price for a gallon of gas in the US at $3.517 (around $3.52). If you’ve been keeping track of the roller coaster of gas prices over the last few years, $3.52 isn’t necessarily the best price for a gallon of gas – but it’s far from the worst, which soared to as high as $4.11 or so as the national average in the last year.

During the month of July, gas prices often soar. More Americans go on vacation in the summer months (June and July) than at any other time of the year, and gas prices soar because of the scarcity of gas and the number of on-the-road Americans who need a fixed, limited supply of gasoline. As more Americans travel, gas itself becomes scarce, with some gas stations closing down pumps because there’s no new gas available. In some places, a limited supply of gasoline causes some gas stations to hike up gas prices for customers who have to use certain gas stations because of their geographical proximity.

What’s causing gas prices to remain at their current, surprising “low”? There’ve been no major hurricanes, or pipeline explosions in the Middle East that’ve caused a spike in gas prices. That, along with the decline in travel desires of the majority of Americans (who’ve reduced their amount of travel to save money and expenses) has led to an increase in gas availability and lower prices. When travel drops and gas profits decrease, prices are often lowered in order to encourage greater spending.

We don’t know if the national trend of gas prices that’s been headed in our favor will last, but one thing we do know is that any relief we can get at the gas pump – no matter how small—is enough to keep us content.