Gas Prices are Dropping but Fewer Americans are Filling Up

Despite steadily falling gas prices during the peak of the summer driving season, fewer motorists fueled up last week. It is another sign that, for now, Americans are changing their driving habits to cope with higher pump prices. Meanwhile, the cost of oil has edged lower on fears of economic slowdowns elsewhere around the globe. Because of these factors, the national average for a gallon of gas fell to $4.05. Today’s national average is 67 cents less than a month ago and 87 cents more than a year ago.

According to new data from the Energy Information Administration (EIA), gas demand dropped from 9.25 million barrels per day to 8.54 million barrels per day last week. The rate is 1.24 million barrels per day lower than last year and is in line with demand at the end of July 2020, when COVID-19 restrictions were in place and fewer motorists hit the road. Moreover, according to EIA, the total domestic gasoline supply rose slightly by 200,000 barrels to 225.3 million barrels.