AAA: Gas Prices Have Likely Peaked for the Year

gas sign

NATIONAL REPORT — Recent decreases at the pump could be signaling the end of gas price increases for 2020.

According to AAA, the national gas price average hit $2.20 one month ago, the highest since the beginning of the novel coronavirus pandemic earlier this year.

In the past four weeks, motorists have seen the national average slowly decrease, down to an average of $2.17 on Aug. 17 despite gasoline demand last week reaching the highest measurement — up to 8.88 million barrels per day — since mid-March, according to the latest Energy Information Administration (EIA) weekly report.

On the week, nearly 40 states saw slight changes at the pump with either a 1-cent or no change in their averages. Some state gas price averages decreased by as much as 4 cents, with Michigan (4 cents) and Florida (3 cents) seeing the largest drops.

Meanwhile, a dozen states saw an increase at the pump. These were mostly minimal jumps except for Indiana (5 cents) and Wisconsin (4 cents), AAA reported.

"Gas prices are stalling, if not decreasing, at the vast majority of pumps," said Jeanette Casselano, AAA spokesperson. "We've likely seen gasoline prices peak for 2020, barring any major hurricane(s)."

National Gas Price Comparison 2017-2020

Across the country, 72 percent of all stations are selling gas for less than $2.25 and 41 percent have gas under $2 per gallon. EIA measures gasoline stocks at 247 million barrels — a 12-million year-over-year surplus — for the week ending Aug. 7.

This extremely healthy supply amid lower seasonal demand is paving the way for one of the lowest annual gas price averages this decade, according to AAA.

The Aug. 17 national average is 3 cents cheaper than last month and 45 cents less than a year ago.