Madison residents have been paying less at the gas pump this past week as part of a national trend of lower gas prices that is expected to continue for the next several months.
In the past week, the gas prices across America have moved downward. In Madison, prices dropped by about 3.9 cents per gallon, just above the national average of 4.5 cents per gallon, according to a statement from GasBuddy.com, a website that tracks gas prices in cities throughout the United States. Gas prices on Sept. 22 in the city were 33.7 cents cheaper than the same day last year, the statement said.
In the statement, Patrick DeHaan, GasBuddy.com senior petroleum analyst, said prices might drop even lower in the coming months.
“Gasoline prices continue to move lower nationally as we’ve now officially moved into fall,” DeHaan said in the statement. “Looking forward, we’re likely to see additional relief at pumps in the months ahead, and it’s quite possible that by the time we’re observing Thanksgiving that gasoline prices will be 20 or more cents per gallon lower.”
The national average for gas prices fell 7.3 cents in the last month, the statement said.
Gregg Laskoski, another senior petroleum analyst from GasBuddy.com, said the recent changes in gas prices are beneficial for everyone, but especially for Wisconsin residents.
“It’s good news, certainly for folks in Wisconsin,” Laskoski said. “It’s $3.41 a gallon—that’s come down 9 cents in the past week, and that’s comparable to what we are seeing nationwide. The national average is just a few cents more than Wisconsin’s average.”
Laskoski said he does expect this trend to continue, and added that comparing this year’s gas prices to last year’s shows a significant improvement.
Laskoski said at this time last year drivers in Wisconsin were paying 40 cents more than what they are paying currently, which is a much better situation. Last year, Wisconsin residents were paying $3.86 a gallon, and the national average for gas prices was $3.80 a gallon, Laskoski said.
The favorable trend also reflects that the nation has a much healthier fuel supply and that crude oil prices are relatively low, Laskoski said.
Laskoski said North America has a favorable amount of crude oil, as well as increased production there. The United States is receiving a greater amount of crude oil from Canada, as well, and much greater fuel supply from Mexico, according to Laskoski.
These factors can be contextual, Laskoski said. He said the current crude oil prices of West Texas Intermediate, a key crude oil producer that is often referred to, are less than $103 per barrel. Yet when the United States thought of attacking Syria a few weeks back, the crude oil prices were expected to be $111 per barrel, Laskoski said.
The passing of Labor Day and entrance into the fourth quarter of the year could also cause the decrease in gas prices, Laskoski said.
“At this time of year the winter blend gasoline is starting to get into the market and it’s cheaper to produce because there are fewer additives and it takes less time” Laskoski said. “The fourth quarter is when we see consumer demand somewhat at a much lesser pace.”
