Finance
Drop in fuel demand and oil prices sends gas prices lower: AAA
Drivers are getting a break at the pump, and prices are set to dip lower, according to AAA. (iStock)
Gas prices dipped this week as demand for fuel and oil prices dropped, according to the latest AAA report.
The national average cost for a gallon of gas declined to $3.65, a slight two-cent decrease from the previous week. Gas demand fell from 8.66 to 8.42 million barrels per day last week and oil prices decreased by 55 cents to settle at $82.81 per barrel of oil, according to data from the Energy Information Administration (EIA).
Lower demand for gas and a continued drop in oil prices could suppress pump prices even more as drivers head toward the Memorial Day holiday.
“Domestic gas demand is pretty pokey at the moment, which is often the case in the runup to Memorial Day and the traditional start of summer driving season,” AAA Spokesperson Andrew Gross said. “The recent national average price of $3.67 could be the peak until hurricane season is well underway. But as always, the wildcard will be the cost of oil, so stay tuned.”
If you’re trying to lower your overall auto costs, you could consider switching auto insurance providers. You can visit Credible to compare quotes from different companies without affecting your credit score.
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Least and most expensive states to pump gas
Gas costs for motorists nationwide fluctuated, with some states tallying higher averages than others. These 10 states have the least expensive prices:
- Mississippi ($3.09)
- Colorado ($3.13)
- Louisiana ($3.15)
- Oklahoma ($3.16)
- Arkansas ($3.21)
- New Mexico ($3.23)
- Kansas ($3.23)
- Alabama ($3.25)
- Texas ($3.25)
- Tennessee ($3.27)
The most expensive markets for gas in the country include the following 10 states:
- California ($5.40)
- Hawaii ($4.80)
- Washington ($4.65)
- Nevada ($4.59)
- Oregon ($4.43)
- Alaska ($4.37)
- Arizona ($4.09)
- Utah ($3.97)
- Idaho ($3.93)
- Illinois ($3.91)
Shopping for cheaper auto insurance is another way drivers can lower the cost of owning a car. You could consider changing your auto insurance provider if you want to save money on your auto costs. Visit Credible to find your personalized premium without affecting your credit score.
Auto car sales lag
High borrowing costs have made consumers think twice about making large ticket purchases like cars, as evidenced in the lag in auto sales, according to the first quarter gross domestic product (GDP) reading released by the Bureau of Economic Analysis (BEA) on Thursday.
Consumers paid an average annual percentage rate (APR) of 7.1% for new vehicles and 11.7% for used car financing in the first quarter of 2024, according to a recent Edmunds report. Moreover, the share of consumers with new-vehicle monthly payments of $1,000 or more remained above the 17% mark for the fourth straight quarter.
“Compelling new product launches combined with the reintroduction of incentives and rebounding inventory in the new vehicle market are all positive signs for shoppers, but elevated interest rates have dampened any positive market momentum,” Edmunds’ Head of Insights Jessica Caldwell said.
One way to lower your overall cost of car ownership is to shop for cheaper auto insurance, which can help reduce your monthly premiums. Visit Credible to compare your options without affecting your credit score.
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JPMorgan Chase CEO Jamie Dimon said Wednesday the looming tariffs that President Donald Trump is expected to slap on U.S. trading partners could be viewed positively.
Despite fears that the duties could spark a global trade war and reignite inflation domestically, the head of the largest U.S. bank by assets said they could protect American interests and bring trading partners back to the table for better deals for the country, if used correctly.
“If it’s a little inflationary, but it’s good for national security, so be it. I mean, get over it,” Dimon told CNBC’s Andrew Ross Sorkin during an interview at the World Economic Forum in Davos. “National security trumps a little bit more inflation.”
Since taking office Monday, Trump has been saber-rattling on tariffs, threatening Monday to impose levies on Mexico and Canada, then expanding the scope Tuesday to China and the European Union. The president told reporters that the EU is treating the U.S. “very, very badly” due to its large annual trade surplus. The U.S. last year ran a $214 billion deficit with the EU through November 2024.
Among the considerations are a 10% tariff on China and 25% on Canada and Mexico as the U.S. looks forward to a review on the tri-party agreement Trump negotiated during his first term. The U.S.-Mexico-Canada Trade Agreement is up for review in July 2026.
Dimon did not get into the details of Trump’s plans, but said it depends on how the duties are implemented. Trump has indicated the tariffs could take effect Feb. 1.
“I look at tariffs, they’re an economic tool, That’s it,” Dimon said. “They’re an economic weapon, depending on how you use it, why you use it, stuff like that. Tariffs are inflationary and not inflationary.”
Trump leveled broad-based tariffs during his first term, during which inflation ran below 2.5% each year. Despite the looming tariff threat, the U.S. dollar has drifted lower this week.
“Tariffs can change the dollar, but the most important thing is growth,” Dimon said.
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