"For the first time in recent memory year-over-year discounts are below the $1 per gallon benchmark, largely because gas prices began falling this time last year," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Consumers are saving 93 cents per gallon versus this same date last year. Gas prices could remain volatile as refinery maintenance season continues, which leaves supplies tightened while gasoline demand remains high. The good news for motorists is that prices are still forecast to slip back toward $2 a gallon by the end of the year."

The national average price of gas has fallen in October for three years in a row. Gas prices typically drop in October due to a seasonal decline in both driving and fuel demand. Driving is expected to remain relatively strong because of low gas prices. Total U.S. driving topped 1.82 trillion miles during the first seven months of the year, beating the previous record of 1.77 trillion set during the first seven months of 2007, according to the latest estimates by the Federal Highway Administration. Even though driving should decline from summertime highs through the end of the year based on typical seasonal trends, 2015 could go down as the busiest driving year of all time. 

Oil prices moved higher last week due to geopolitical tensions and a weakening dollar. Russia has increased its presence and engagement in Syria causing unrest and turmoil in the region which could disrupt and/or limit supply. The US dollar weakening is also reported to be underpinning the rally. West Texas Intermediate crude oil is priced in US dollars, so as the value of the dollar drops WTI becomes relatively less expensive and a more attractive investment. At the close of Friday’s formal trading on the NYMEX, WTI was up 20 cents per barrel, settling at $49.63 per barrel.

CURRENT AND PAST PRICE AVERAGES 

Regular Unleaded Gasoline