Gas prices expected to fall and stay low through summer

Commuters and vacationers can breathe a sigh of relief at the gas pump knowing gas prices appear to be dropping as the summer travel season kicks in, according to a report from AAA.

“New Mexicans are paying less for gasoline so far this summer when compared to last year,” Daniel Armbruster, AAA New Mexico spokesman, said in a news release. “Supply builds of crude oil and gasoline are helping to keep retail fuel prices in check as many hit the road for summer vacations.”

Although oil supplies are the main catalyst for price drops, there are other reasons pump prices are slowly creeping down.

AAA spokesman Andrew Gross told the Associated Press that demand for gas is declining. “Traditionally — pre-pandemic — after Memorial Day, demand would start to pick up in the summertime. And we just don’t see it anymore.”

The rise in popularity of electric vehicles and other fuel-efficient vehicles is also credited as a reason for declining demand.

The average price for a gallon of regular unleaded gas in New Mexico on Thursday was $3.20, 4 cents less than a week before and 23 cents less than on June 13, 2023, according to AAA.

The average price for a gallon of regular gas in Albuquerque on Thursday was $3.18, 9 cents less than a week prior and down 19 cents from a year ago.

Among the state’s other metro areas, Santa Fe drivers were paying the least at $3.14 a gallon, which was 32 cents less than last year. Drivers in Farmington were paying the most in the state at $3.23 a gallon, though Farmington drivers were paying 51 cents less than the same day last year, according to AAA.

The national average stood at $3.46 for a gallon of regular, 3 cents less compared a week earlier and 13 cents less than a year ago.

The Associated Press reported that analysts like Patrick De Haan, head of petroleum analysis at GasBuddy, expect the national average to stay in the range of $3.35 to $3.70 per gallon this summer.

While experts like De Haan cannot guarantee gas prices will remain lower, it is likely they will steadily drop, excluding the impact of special exceptions like hurricanes, which often cause refineries to slow output and consequently cause gas prices to go up. Analysts expect the average gas price to remain steady and if trends continue, prices might drop even lower during the winter season, the Associated Press reported.