Drivers who have enjoyed falling gas prices over the last month should expect more good news at the pump. Experts say the national average for a gallon of gasoline might fall below $2 dollars by the end of the year.
Motorists in the Buffalo Niagara region have benefited from an 11-cent drop in the price of a gallon of gasoline since mid-June. Patrick DeHaan, senior petroleum analyst at Gas Buddy.com, tells WBFO consumers can expect to see the lowest prices after Labor Day.
“I think more noticeable drops will be in September and October,” DeHann said. “Will gas prices be declining every single day for the next several months? Probably not. You could see a brief period of some sort of increase. But by and large, the trend will remain a gentle downturn, and the downturn should accelerate in mid and late September.”
After average prices in the region hit $2.86 in mid-June, the typical gallon of gas was selling for $2.75 on Wednesday. DeHaan said some factors overseas directly contribute to the projections.
“The decrease will likely be enhanced by falling crude oil prices and geopolitical issues that are weighing on the price of oil. Mainly being an economic slowdown in China, combined with the prospects of Iran’s oil again showing up on the global market after years of sanctions,” he said.
While the Buffalo Niagara region still remains 12 cents higher than the National average, local prices are currently $1.03 cheaper than they were last August with the lowest numbers expected to come between Thanksgiving and Christmas.
DeHaan says figuring out why prices may dip as summer winds down isn’t an exact science.
“It really depends on the year. Some years, gas prices do decline as we approach the end of the summer driving season,” DeHaan said. “Hurricanes tend to make a major impact on that, and that is something we’ve seen in years past with Katrina in 2005, Hurricane Ike in 2008, and, of course, Hurricane Sandy just a couple years ago.”
