PROVIDENCE — Gas prices are down again for a sixth straight week, but the trend is likely coming to an end as both temperatures and demand continue to heat up.
The average gas price in Rhode Island is down three cents over the past week, AAA Northeast said Monday, averaging $3.38 per gallon. The price is 16 cents lower than a month ago and 14 cents lower than on the same day last year.
Rhode Island’s average gas price is six cents lower than the national average of $3.44 per gallon.
“After benefiting from falling gas prices for weeks, drivers might see prices begin to stabilize as the summer driving season heats up, especially with record travel expected over the Independence Day holiday,” said Jillian Young, director of public relations for AAA Northeast. “The combination of increasing demand, shrinking supply and higher oil costs could end the recent run of falling prices if markets continue to tighten.”
Since late April, cheaper crude oil, soft gasoline demand and growing inventories of both have fueled the trend of price decreases. The latest data from the Energy Information Administration, however, shows a paradigm shift could be upon us.
Last week, demand was brisk, totaling nearly 9.4 million barrels per day — one of the highest levels in recent memory. Meanwhile, regional supplies of gasoline dropped a sizable 2.7 million barrels. With crude oil notching price gains for three weeks straight, pump prices are under increasing pressure.
AAA Northeast’s June 24 survey of fuel prices found the current national average unchanged from last week. Today’s national average price is 16 cents lower than a month ago and 13 cents lower than the same day last year.