Motorists Seeing Pump Price Savings

December 16, 2019 - December is finally bringing cheaper gas prices to pumps across the country. Today’s average is $2.55, which is nearly a nickel cheaper than the beginning of the month. Decreasing gasoline demand and increasing stocks are driving the change in pump prices. The latest Energy Information Administration (EIA) reports show gasoline demand at its lowest rate since mid-February and the highest stock levels since this summer.

South Dakota Gas Prices

“As the weather turns colder, people tend to drive less and we see less gasoline demand,” said Marilyn Buskohl, AAA spokesperson. “This is causing gas prices to be less expensive. In the lead up to the holidays we may see a small spike in demand, but not enough to impact gas prices substantially.”

Today’s national average is two cents cheaper than last week, a nickel cheaper than last month, but 18 cents more expensive than this time last year.   

Quick Stats 

• The nation’s top 10 largest weekly changes are: Michigan (-9 cents), Idaho (-9 cents), Indiana (-8 cents), California (-8 cents), Ohio (+8 cents), Nevada (-7 cents), Utah (-7 cents), Florida (- 6 cents), Oregon (-5 cents) and Washington (-5 cents).
• The nation’s top 10 least expensive markets are: Mississippi ($2.20), Missouri ($2.20), Oklahoma ($2.23), Louisiana ($2.23), Texas ($2.23), Arkansas ($2.25), Alabama ($2.25), South Carolina ($2.27), Kansas ($2.27) and Virginia ($2.29).

Central States and Great Plains Region

Aside from Ohio (+8 cents), gas price averages are cheaper on the week across the Great Lakes and Central States. Michigan had the largest decline with a nine-cent drop. Gas prices edged lower as the region saw a 1.4 million bbl build in gasoline stocks. In fact, regional stocks have mostly increased since the beginning of November according to EIA data.

Year-over-year, gas prices in the region are more expensive, ranging from nearly a dime to 50 cents more than mid-December 2018. However, compared to last month, most drivers in the region are paying as much as a dime less to fill-up. 

At the start of the work week, gas prices in the region range from $2.20 in Missouri to $2.63 in Illinois.

Oil Market Dynamics 

At the close of Friday’s formal trading session on the NYMEX, WTI increased 89 cents to settle at $60.07. Crude prices jumped up after the U.S. and China announced that the world’s two largest crude consuming countries have reached a tentative “Phase One” trade agreement that reduces some U.S. tariffs in exchange for increased Chinese purchases of American farm goods. Since the start of the trade war between the two countries, crude prices have suffered because of reduced crude demand expectations as a result of the countries having to pay more for each other’s goods. If trade tensions continue to decrease, crude prices could increase again this week due to reduced market concerns that crude demand will decrease next year.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.