Gas Prices By State: National Average Gas Price To Drop This Summer As Supply of Ethanol Improves
For now, gas prices nationwide will vary between the current average of $3.54 per gallon to $3.75, but drivers should be happy to hear they're expected to drop in the next few weeks.
Last year's record average price of $3.79 isn't expected to be surpassed this year, according to AAA spokesman Michael Green.
Right now, prices are inching upwards and many say it's because of rising ethanol prices. Ethanol is in about 10 percent of the gas consumers pump when refueling their vehicles.
There's a tight supply on ethanol and it can be blamed on the cold winter. Because of this, producers of ethanol slowed down their production and even shut down plants.
With ethanol being in tight supply, ethanol stocks have taken a hit as well, down more than 10 percent compared to last year at this time.
Ethanol supply is expected to improve in the very near future and thanks to a good yield of corn this year, ethanol is expected to return to abundant supply.
Usually around this time, as the weather gets warmer, and gas refiners change from their winter blend of gas to their summer blend, prices head higher. But, this year it hasn't been so bad.
Another reason for the relatively moderate prices and expectations for lowering of prices is the USA's calmness in world relations, especially in the Middle East.
This is great for drivers looking forward to enjoying summer travel. AAA predicts prices between $3.30 and $3.40 per gallon in June.
After being at their lowest prices in June, gas prices will climb a little in late summer and then fall again in the autumn, AAA says.