Gas prices continue to drop, but for how long?

Utah gas prices have fallen 2.4 cents per gallon in the past week, averaging $3.11 per gallon Monday, according to GasBuddy’s daily survey of 1,171 stations. Gas prices in Utah are 8.9 cents per gallon lower than a month ago, and stand 7.1 cents per gallon lower than a year ago.

According to GasBuddy price reports, the cheapest station in Utah was priced at $2.76 per gallon June 24 while the most expensive was $4.79 per gallon, a difference of $2.03 per gallon. The cheapest price in the country Monday stood at $1.92 per gallon while the most expensive was $5.86 per gallon, a difference of $3.94 per gallon.

The national average price of gasoline has fallen 2.5 cents per gallon in the last week, averaging $2.65 per gallon Monday. The national average is down 19.2 cents per gallon from a month ago, yet stands 18.7 cents per gallon lower than a year ago.

“For the seventh straight week, the national average price of gasoline has fallen, to a level last seen in March. But just in time for the upcoming holiday, the streak is at high risk of being broken,” said Patrick DeHaan, head of petroleum analysis for GasBuddy. “A large refinery explosion in Philadelphia last week may ultimately serve to push gasoline prices higher once we learn more details about how long that facility may be offline. For now, motorists along the East Coast may only see prices rise a few cents as a result, but could see more of a hit should the refinery be down for a long period of time,” he continued. “Furthermore, oil prices have rebounded notably due to increasing tensions between the U.S. and Iran and attacks in the Strait of Hormuz, a key waterway which sees over 20 percent of global oil supply traversing through the waterway.

“Whether the upcoming and likely rebound in gasoline prices sticks for long is unknown, but if tempers continue to flare between the two countries, motorists may fall victim to the rocky relationship in the form of higher gas prices,” said DeHaan. “In addition, trade tensions with China have now taken a back seat, but with President Trump meeting President Xi Jinping, we may see either more upward pressure on oil if signs of a truce in trade emerge, or downward pressure if the countries move farther apart.”