Gas prices in state are lower than they were last summer
During the summer, many motorists frown at the digits in the dollar row on gas-station pump screens. But there has probably been less grimacing recently than in the past couple of years.
While rising demand and the annual switchover to costlier summerblend gasoline push prices higher in the late spring and early summer, Connecticut motorists have benefited in the past few weeks from factors such as strong supply. The average price for a gallon of regular unleaded gas in Connecticut was about $3.41, as of Tuesday, compared with an average of $3.46 a week ago, $3.56 a month ago and $3.81 a year ago, according to data compiled by AAA.
“Right now, inventories are good. We have more inventory than we did last year, so supply is less tight. We're not seeing a fuel shortage,” AAA Northeast spokeswoman Lauren Fabrizi said in an interview on Tuesday. “Another reason is, despite the popularity of summer road trips, overall gas demand is down right now. That's partly because daily driving habits have changed following the pandemic. For example, with more people working remotely, they're not commuting as much.”
The statewide average price of $3.41 for a gallon of regular unleaded compared with a national average of $3.35. The national level was down from $3.51 a month ago and $3.82 a year ago.
Among Connecticut's neighbors, the average for a gallon of regular unleaded was $3.37 in Massachusetts, $3.50 in New York and $3.29 in Rhode Island. Nationwide, Hawaii accounted for the highest rate, at $4.66, while Mississippi's average of $2.89 comprised the lowest rate.
The U.S. Energy Information Administration notes on its website that, “in addition to differences in state and local taxes, other factors contribute to regional differences in gasoline prices, including distance from supply,
supply disruptions and retail competition and operating costs.”
Even within Connecticut, prices vary. Among the state’s eight counties, a gallon of regular unleaded ranged from $3.33 in Tolland County to $3.46 in Fairfield County.
As demand declines following the end of the summer travel season, gas prices will likely further decrease during the next few months, according to AAA officials. They caution, however, that severe weather or geopolitical disruptions could change those projections.
“These seasonal trends are basically so long as inventories stay good,” Fabrizi said. “We’re keeping tabs on hurricane season. if a hurricane were to hit the Gulf Coast and impact the refineries there, that could certainly cause the price of gas to go up.”
Fabrizi added that, “if there’s a supplier saying they won’t export to the U.S., or threatening to cut production, that could create a supply-and-demand imbalance. Therefore, the price of oil here would have to go up, which then means gas prices would go up.”
In Connecticut and nationwide, gas prices
spiked a couple of years ago, in the wake of Russia’s invasion of Ukraine. Other issues such as low inventories also affected prices. Connecticut’s highest recorded average price for a gallon of regular unleaded was $4.98, on June 14, 2022, according to AAA. The state’s highest recorded average for a gallon of diesel was $6.44, on May 18, 2022.
The drop in gas prices provides some relief to Connecticut-based businesses, which face some of the highest operating costs in the country. In this year’s edition of CNBC’s Top States for Business study, Connecticut ranked No. 43 in the cost-of-doing business study.
“It crosses all different types of industries when it comes to the cost of fuel and how it impacts either the bottom line of the business or ultimately what they have to charge to consumers to make ends meet here in Connecticut,” Chris Davis, vice president of public policy at the Connecticut Business & Industry Association, said in an interview. “Every dollar that we can save on fuel costs is a dollar that can be either reinvested into a company to offer even better goods and services, or offer lower prices to consumers.”