Enjoy lower gas prices while you can.
At some point in the not-too-distant future, they will begin to rise again before peaking in mid to late summer.
The national average price was $3.112 per gallon on Sunday (Dec. 31), down half a cent from $3.117 on Saturday. It fell 19.8% from the 2023 high of $3,881 on Sept. 18 and was down 2.6% from $3,195 a year ago.
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The year-end was slightly above the low of $3.066 per gallon reached on December 18. Data from the American Automobile Association show. It rose for four days to $3,129, along with crude oil prices, but fell again on December 23.
The year-end close was 5.3% lower than the 2021 close of $3.285 a gallon and the lowest year-end close since $2.53 a gallon in 2000.
In 28 states, predominantly in the South and Midwest, the average price was below $3 per gallon. Mississippi had the lowest state average: $2,666 a gallon, with the lowest price recorded in Simpson County, southeast of Jackson, at $2,528.
The highest state average was California at $4,702, one of only three states with average prices above $4. The other two are Hawaii ($4,678) and Washington ($4.13).
Seven California counties, all rural, had prices above $5. The most expensive was Mono County, located between Yosemite National Park and Nevada, at $5,763. The lowest price was in Yuba County: $4.25.
Gas prices are obviously tied to oil prices. As of December 29, crude oil represented about 55% of AAA's national average.
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West Texas Intermediate, the US crude benchmark, rose 16.7% to its peak price of $93.68 per 42-gallon barrel on September 27. The price has fallen 23.5% since then and 10.7% by 2023.
Gasoline's seasonal patterns are due to refiners substituting more expensive ingredients in the summer to minimize fires and the like. But economic conditions and the global market play an important role.
Energy companies made huge profits due to the large increase in oil prices in 2022. But the drop in prices in 2023 affected their stocks. Chevron (CLC) – Get a free report ended the year with a drop of 16.9%. The Energy Select Sector SPDR Exchange Traded Fund (XLE) – Get a free reportwhich includes the largest energy companies, fell 4.2% for the year and 7% in the fourth quarter.
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