AAA Alabama: Gas prices could dip below $3 in coming months
MONTGOMERY, Ala. (WSFA) - With fall only a few days away, AAA Alabama believes drivers could soon see some additional relief at the gas pump.
“This is the time of year when we normally see our prices drop because our demand drops,” said Clay Ingram with AAA.
The summer travel season is coming to a close, which means less demand.
The average cost of regular gasoline in Alabama was $3.25 on Sunday, per AAA.
While regular gas prices no longer exceed $4, and sit below the national average, they are still up from last year’s $2.87.
A big reason for the spike is Russia’s war with Ukraine, which impacted the cost of crude oil. It is still ongoing.
“The dust is kind of settled on that a little bit,” Ingram said. “We’ve got some increased production from other countries around the world because so many countries have boycotted Russian oil.”
With global production up and demand trickling down, a continued decline in prices is not farfetched. Ingram believes the trend could continue into the winter months.
“With some remnants of the pandemic still in place, with the Russia, Ukraine situation and the volatility of the global oil market, it’s made it much trickier to do any kind of predicting,” Ingram said. “But I think we’ll be noticeably less in January than we are now,” he said.
AAA Alabama even said prices could go below $3 a gallon, but only time will tell.
Ingram added a common misconception is that the government can have a significant impact on gas prices. Beyond releasing the Strategic Petroleum Reserve, prices greatly rely on global supply and demand.
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