Thousands of gas stations in the Gulf Coast region have seen pump prices fall below $ 4 this week, according to an industry expert.
As of Thursday morning, the price of a gallon of regular gasoline at about 2,535 stations was at or below $ 3.99 per gallon, tweeted Patrick De Haan, head of petroleum analysis for GasBuddy.
He also estimated that the number of stations below the $ 4 mark “could double or triple” over the next two weeks.
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De Haan told FOX Business that stations that see prices fall below the $ 4 mark are likely to be grouped in a handful of states around the Gulf Coast region such as Georgia and Louisiana. A station in Georgia, according to De Haan, already has the gas price as low as $ 3.66 per gallon.
That̵[ads1]7;s significantly below the national average for a gallon of regular gasoline, which stands at $ 4.75 per Thursday, according to AAA. It is down 10 cents from a week ago, and well below the $ 5 mark reached in early June, according to AAA data.
Off the Gulf Coast, De Haan estimated that stations in the Great Lakes could also fall to that level.
These estimates come amid “underlying concerns about a global economic downturn” that “have chiseled away oil prices in recent trading sessions,” GasBuddy reported Monday.
Aside from concerns about an economic downturn, De Haan also noted that “a strong US dollar and a build-up of gasoline supplies” are contributing to the fall in prices.
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On Wednesday, the national average for a gallon of petrol fell by 2.8 cents, according to De Haan. This marked the second largest one-day fall in gas prices in the last 10 years. However, De Haan warned earlier this week in a blog post that the fall in gas prices “could disappear if oil prices turn around”.
Positive economic data or a significant decline in supply, as reported by the US Energy Information Administration, are some factors that could push prices up again, he said.
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Experts have previously warned that if a major storm hits the Gulf Coast, for example, it could shut down refineries and block supplies.
Still, “Americans are currently spending nearly $ 100 million a day less on gasoline than when prices peaked a few weeks ago, and that is a much-needed relief at a time when gas prices are still close to records,” De Haan told the newspaper. Tuesday’s blog post.