GREEN BAY – Some Wisconsin consumers got an early taste of holiday stories this week as regular gasoline prices dropped below $3 a gallon.
The approach of winter appears to have cooled through the hot summer gasoline prices.
On Monday, consumers saw the price of a gallon of regular gasoline drop below $3 at some convenience stores in metro areas that include Milwaukee, Green Bay and Appleton, and AAA Wisconsin reports that the average statewide gasoline price continues to fall, from $3.23 a week ago to $3.17 Monday to $3.15 Tuesday.
Wisconsin gasoline prices have taken consumers on a rollercoaster ride over the past year, ending 2021 around $3 a gallon before spiking in February when Russia invaded Ukraine. Prices continued to rise due to increases in demand, refinery shutdowns and inflation. The statewide average price peaked in mid-June at $4.93.
Now, current market trends show that Wisconsinites are paying about the same price for gasoline as they did a year ago – maybe even a little less. Gas prices in the United States tend to rise during the summer, when more people travel and stores have to sell a more expensive form of gasoline. They then taper off in the fall and winter, when travel demand declines and stores can stock up on winter blends that are cheaper to produce.
Related:Green Bay, Fox Cities gas prices are among the lowest in the state. How a broken pipeline and Appleton’s company set the stage.
Molly Hart, spokeswoman for AAA – The Auto Club Group, said gas prices continue to drop across Wisconsin and the United States. It’s a trend that should continue into the Christmas holiday travel season barring a shift in global demand, such as if the Chinese economy recovers from the current COVID slowdown, or events that could impact production, such as a refinery shutdown or severe weather.
“It is possible without any outliers or unexpected situations, it could be even cheaper than last year for many Americans by Christmas,” said Hart. “The opposite can be true: If fear of COVID blows over and China’s economy starts to falter again, expect oil prices to rise again.”
Here’s a look at Tuesday’s average gasoline price in various regions and across the state:
| Wisconsin | $3.15 |
| Appleton | $2.98 |
| Fond du Lac | $3.20 |
| Green Bay | $3.12 |
| Madison | $3.25 |
| Manitowoc | $3.14 |
| Milwaukee-Waukesha | $3.10 |
| Cost | $3.03 |
| Sheboygan | $2.93 |
| Stevens Point | $3.30 |
| Wausau | $3.15 |
| Wisconsin gambling | $3.27 |
A ‘huge gift’ for the holiday travel season?
Wisconsin isn’t the only one seeing gasoline prices drop and current market trends could mean drivers could see a national average of about $3 in time for the busy holiday travel season in December.
GasBuddy, an online fuel price tracker, reported Monday that the national average price fell 12 cents last week to $3.52, the lowest level since February when Russia invaded Ukraine, sending global oil and gasoline prices taller. The US Energy Information Administration said in October that oil made up 54% of the price you paid for a gallon of gasoline followed by refining costs (22%), taxes (13%), and marketing and distribution (11% ).
Patrick DeHaan, GasBuddy’s head of petroleum analysis, expects global oil prices, one of the main drivers of gasoline costs, to continue to fall based on weak demand from China and the Biden Administration’s decision to allow Chevron to produce and export oil from Venezuela.
“All the metrics look very positive for drivers as gasoline prices are likely to continue to fall this week, with many areas falling to their lowest level since Russia’s invasion of Ukraine in February,” said DeHaan. “The national average gasoline price could drop below $3 a gallon by Christmas, which would be a huge gift for motorists after a bad year at the pump.”
Hart, the AAA spokesman, said the number of people who traveled during the Thanksgiving holiday matched pre-pandemic levels of more than 1.1 million Wisconsinites and about 54.6 million Americans traveling more than 50 miles for the holiday, about 89% of them driving to their destination. . Hart said it’s a good sign that the upcoming Christmas travel season will also return to pre-pandemic activity levels. AAA will publish a detailed holiday travel season forecast in two weeks.
“I think people are more comfortable getting in the car, taking a road trip 50 miles or more from home,” Hart said. “With what we saw at Thanksgiving, we expect to see high numbers again for the Christmas holiday season.”
Contact Jeff Bollier at (920) 431-8387 or[email protected]. Follow him on Twitter at @JeffBollier.
