Pittsburgh-area gasoline averaged about $2.37 a gallon this morning, shedding 1 cent in the last week and suggesting an expected decline in pump prices may take longer to arrive in southwestern Pennsylvania.
Meanwhile, U.S. prices dropped 5 cents since last Monday and averaged $2.25 per gallon, according to a survey of more than 700 stations in Pittsburgh and seven surrounding counties by price-tracking website GasBuddy.com.
Average regional prices have fallen 61 cents since hitting a high in June of $2.98 a gallon, according to the site. Analysts have predicted prices to fall throughout the coming months and hit close to $2 a gallon by the end of the year.
Crude oil, which accounts for about two-thirds the price of a gallon of gasoline, has languished below $50 a barrel. Also this morning, Moody’s Investors Service revised its 2016 outlook for U.S. oil prices to $48 a barrel — $4 a barrel lower than its previous estimate.
Patrick DeHaan, senior petroleum analyst for GasBuddy, noted that nearly a quarter of the U.S. pumps are currently selling gasoline under $2 a gallon.
“That number will likely grow in the months ahead as refiners continue to finish maintenance and resume producing gasoline at a time when demand is low, contributing downward pressure to gasoline prices,” Mr. DeHaan said in GasBuddy’s weekly report.
Prices in southwestern Pennsylvania are still 98 cents per gallon lower than this time last year, when prices averaged $3.35 a gallon. The region, however, is approaching the one-year mark of when gasoline prices began a historic free fall. From Oct. 19, 2014 to Feb. 2 of this year, gallon prices lost a third of their value and bottomed out at $2.27.
This article was written by Daniel Moore from Pittsburgh Post-Gazette and was legally licensed through the NewsCred publisher network.