Rhode Island Gas Prices Drop 4 Cents Amid National Decline
After a record-high September, gasoline prices in the Northeast are finally showing signs of relief as they begin to decline in October. The drop comes amid lower oil prices and easing demand. Last week, oil prices fell by about $2 following the G7's decision to release 100 million barrels of crude and significant diesel from reserves. This move aimed to address supply concerns in Europe due to conflicts between the U.S. and Iran, as well as Russia and Ukraine. Crude oil prices also benefited from reports that Middle East oil exports are nearing pre-war levels, despite recent attacks and ongoing uncertainties.
Despite the decline in oil prices, gasoline and other refined products remain historically expensive. Domestic supplies are tight, with gasoline inventories falling 1.7 million barrels last week to 204.4 million barrels, which is 7% below the seasonal five-year average. Distillate supplies, including diesel and home heating oil, are 14% below the national average and 46% below the average in the Northeast. Typically, supplies increase during fall and winter as demand cools, but this year, higher export demand and refinery maintenance are causing supplies to decrease instead.
The average gas price in Rhode Island has dropped 4 cents from last week, now averaging $4.34 per gallon. This price is 11 cents higher than a month ago and $1.31 higher than the same day last year. Rhode Island's average gas price is 2 cents lower than the national average. Nationally, the average gas price has decreased by 11 cents from last week, now at $4.36 per gallon. This is 22 cents higher than a month ago and $1.23 higher than the same day last year. Indiana and Georgia have the lowest gas prices in the nation, while California and Hawaii have the highest.
Jillian Young, director of public relations for AAA Northeast, noted that pump prices remain under pressure due to tight supplies of gasoline and diesel worldwide. She added that as global oil output returns to pre-war levels, pump prices are not falling quickly because markets are increasingly focused on the global refined product shortage.