Pulling up to the pump may soon be less painful on the wallet, experts say
NEW YORK — Gas prices climbed to a four year high this summer but after Americans return from Labor Day weekend road trips, pulling up to the pump may be less painful on the wallet.
Olin Ugo works as a delivery driver.
“Yeah it definitely impacts my budget. I definitely have to spend less, save up for some gas.”
A gallon of gas is up nearly 50 cents on average compared to this time last year.
“There are a lot of factors that are making gas prices higher this year,” said Jeanette Casselano with AAA. “A few of those include supply and demand, tons of international demand but not enough supply to keep up with that demand in addition to volatile crude oil prices.”
“The good news for consumers is gas prices are going to be cheaper this fall. Typically in the fall we do see gas prices drop that’s because we see demand going down, people are done taking their summer road trips.”
Also, refineries are able to switch to a winter blend in September which is cheaper to produce.
In a new report, AAA predicts those factors will help push prices down about 13 cents a gallon in the coming weeks.
An economic crisis in oil-producing Venezuela and sanctions on Iran could hurt future supply and trigger a jump in prices, but right now experts believe driving is about to get cheaper.