US retail gasoline prices lower than last year heading into Labour Day

The cost of crude oil typically accounts for a little more than half of the retail gasoline price. Falling crude oil prices, driven by increasing global crude oil supply, have contributed to lower retail gasoline prices heading into this Labour Day. From August 1 to August 25, Brent crude oil prices averaged US$67/bbl, about 15% less than in August 2024.

EIA has forecasted that gasoline prices will decline 11%, or about US$0.35/gal., from August to December. The forecast decline is driven by expectation that crude oil prices will fall, caused by continued oil supply growth. In addition, the annual transition to winter-grade gasoline allows refiners to use less expensive components to produce gasoline, further contributing to lower gasoline prices.

US gasoline prices vary regionally, reflecting local supply and demand conditions, state fuel specifications, and state taxes. The West Coast is the only US region where gasoline prices are higher headed into Labour Day in 2025 than 2024. Retail gasoline prices are usually the highest on the West Coast because of:

• The region’s limited connections with other major refining centres.
• Tight local supply and demand conditions.
• Higher-than-average state taxes in several West Coast states.
• Gasoline specifications for California that make gasoline more costly to produce.

By comparison, gasoline prices on the Gulf Coast are usually the lowest of any US region. Gulf Coast states are home to more than half of US refining capacity, and more gasoline is produced than is consumed in the region. Gulf Coast states also have lower gasoline taxes than the national average.

Read the article online at: https://www.hydrocarbonengineering.com/refining/29082025/us-retail-gasoline-prices-lower-than-last-year-heading-into-labour-day/