Gas prices may soon drop below $3.00 a gallon, analysts say
Both AAA and GasBuddy are predicting lower prices at the pump with prices expected to fall below $3.00 a gallon. (Photo by Joe Raedle/Getty Images)
Gas prices continue to drop across the country with industry analysts predicting a dip below $3 a gallon soon, the first time in four years.
Both AAA and GasBuddy are predicting lower prices at the pump with oil dropping below $60 a barrel, and the downward trend expected to continue in the coming weeks.
By the numbers:
According to AAA, the national average has dropped more than 5 cents to $3.057 a gallon. A week ago, the average was $3.110 and one month ago, $3.186 a gallon. Last year, at this time, it was $3.203 a gallon.
AAA says a lower gasoline demand with the end of the summer travel season and cheaper winter-blend gasoline at the pump are driving lower prices at the pump.
What is winter-blend gas?
Dig deeper:
Seasonal temperatures and Environmental Protection Agency (EPA) regulations drive how gasoline is produced throughout the year.
The difference between summer- and winter-blend gasoline involves Reid Vapor Pressure (RVP), a measurement of how easily gasoline evaporates at a given temperature.
A higher RVP gas evaporates more easily, so winter-blend fuel has a higher RVP because fuel must be able to evaporate at lower temperatures for the engine to operate properly, especially when it's cold. If the RVP is too low on a frigid day, the vehicle will be hard to start and once started, will run rough.
To achieve a higher RVP, winter-blend gas has a higher percentage of butane in the fuel mix. Butane, which is used as a lighter fluid, has high volatility and vaporizes at lower temperatures, helping engines start on cold winter mornings.
The butane and other winter blend additives result in lower production costs with consumers gaining lower gas prices.
The Source: Information in this article was sourced from AAA and GasBuddy. This story was reported from Orlando.