Gas prices have fallen for more than a month and the discount at the pump doesn't show any signs of letting up, according to the latest information from AAA-The Auto Club Group.
Sunday's pump prices declined for the 33rd consecutive day in Florida and Georgia, and 32nd day in Tennessee. During this time, gas prices declined 14 cents in Florida, 18 cents in Georgia, and 17 cents in Tennessee. These current streaks of declines are the longest since last fall when prices dropped for 37 straight days beginning in August. Monday’s average prices for regular unleaded gasoline are $2.20 in Florida, $2.10 in Georgia, and $2.03 in Tennessee.
"Gas prices keep moving lower thanks to increased gasoline supply and low oil prices," said AAA spokesman Mark Jenkins.
"Oil prices hit their lowest level since early May, making it cheaper to produce gasoline; and refineries have ramped-up gasoline production to levels that continue to satisfy record-high demand. While prices may continue to slide through the rest of July, they could rise if there are refinery issues, stronger than anticipated economic growth, geopolitical tensions overseas or hurricanes in the Gulf that impact distribution and production."
The increased production of gasoline and diesel has actually caused crude oil prices to decline. Americans are driving more than ever, and refineries have been running hard for months to ensure there is enough fuel to meet market demands. It has reached the point now that there is so much gasoline in the market that refineries are backing off on the amount of oil they purchase. This reduction in oil-demand only makes the oil market even more saturated than before, which pushes crude prices lower. Oil prices are now back to lows not seen since mid-May. The price for WTI logged a daily settlement of $45.41 on Friday - $3.58 lower than the week before.
Year-over-year drivers continue to benefit from noticeable discounts at the pump to refuel their vehicles. Compared to this same date last year, gas prices are down 47 cents in Florida, 56 cents in Georgia, 49 cents in Tennessee. Compared to two years ago, pump prices are down $1.38 in Florida, $1.44 in Georgia, and $1.39 in Tennessee.
