PROVIDENCE – The average weekly price of self-serve, regular unleaded gasoline in Rhode Island dropped by 3 cents to $3.38 per gallon this week. That price is 6 cents lower than the national average, AAA Northeast said on Monday.
A year ago, the price of regular gas in Rhode Island was $3.52 per gallon. Since late April, cheaper crude oil, soft gasoline demand and growing inventories of both have fueled the trend of price decreases, the agency says.
However, the latest data from the U.S. Energy Information Administration shows a paradigm shift could be upon us. Last week, demand was brisk, totaling nearly 9.4 million barrels per day – one of the highest levels in recent memory, according to AAA.
Meanwhile, regional supplies of gasoline dropped a sizable 2.7 million barrels. With crude oil notching price gains for three weeks straight, pump prices are under increasing pressure.
“After benefiting from falling gas prices for weeks, drivers might see prices begin to stabilize as the summer driving season heats up, especially with record travel expected over the Independence Day holiday,” said Jillian Young, director of public relations for AAA Northeast. “The combination of increasing demand, shrinking supply and higher oil costs could end the recent run of falling prices if markets continue to tighten.”
Midgrade gas in Rhode Island averages $4.02 per gallon, premium gas averages $4.35 per gallon and diesel fuel averages $4.13 per gallon, AAA Northeast says.
In Massachusetts, the average price of self-serve, regular unleaded gas dropped 2 cents, to $3.43 per gallon. A year ago, the price of regular gas in Massachusetts was $3.54 per gallon.
Midgrade gas in the Bay State averages $3.98 per gallon, premium gas averages $4.34 per gallon and diesel fuel averages $4.05 per gallon.