Gas averages $4.27 on Oct. 22 as AAA says October is poised for a record

Gas prices dipped this week, but drivers are still paying far more than they did a year ago. AAA says the national average for regular gasoline fell 6 cents in a week to $4.27 as of Oct. 22.

The relief may be short-lived. On Oct. 24, AAA's live tracker showed the average at $4.2957, up slightly from $4.2926 a day earlier. AAA also says October is on pace to be the costliest October ever for gas, following record highs for August and September. Whether the month actually ends as a record is not yet known.

Key facts

• AAA says regular gas averaged $4.27 on Oct. 22, down 6 cents in a week.
• On Oct. 24, AAA's tracker showed the average at $4.2957.
• A year ago, the average was $3.0656 a gallon, AAA says.
• On Oct. 24, AAA says diesel averaged $6.3374.
• AAA says October is poised to set a record for the month.

Why prices fell, and why not more

AAA says the weekly drop came from the shift to winter-blend gasoline, which costs less to make. Refiners switch to this blend in the colder months.

Crude oil is keeping a lid on any big decline. AAA says oil prices close to $100 a barrel, driven by instability in the Strait of Hormuz, are stopping prices at the pump from falling steeply. According to AAA, U.S. WTI crude dropped 67 cents to close at $97.15 a barrel on Wednesday.

Supply and demand also tightened. Citing EIA data, AAA says gasoline demand climbed from 8.40 million to 8.98 million barrels a day. Over the same period, AAA says total U.S. gasoline supply slipped from 208.3 million to 205.3 million barrels. U.S. crude stocks fell by 3.1 million barrels to 412.5 million, according to AAA, leaving them 3% under the five-year average.

Background

AAA's detailed figures show how far prices have climbed. The group lists the Oct. 22 national average at $4.2701, compared with $4.3344 a week before. A month earlier, the average was $4.4750, and a year earlier it was $3.0656, according to AAA.

Prices remain below the all-time high for regular gas. AAA's all-time record for regular is $5.0165 a gallon. Diesel is much closer to its peak. AAA lists the diesel record as $6.5276, set just last month.

On Oct. 24, AAA's tracker put diesel at $6.3374, compared with $3.6404 a year before.

Who is affected

Drivers in the West face the highest prices. AAA lists the costliest markets as California at $6.08, Hawaii at $5.64, Washington at $5.34 and Nevada at $5.33. Several nearby states are also high. According to AAA, Oregon is at $4.90, Alaska at $4.88 and Idaho at $4.74.

Drivers in a handful of states pay the least. AAA says the cheapest markets are North Carolina at $3.55, Georgia at $3.70, Texas at $3.76 and Tennessee at $3.82.

Truckers and other businesses that rely on diesel are seeing especially steep costs. AAA's tracker shows diesel at $6.3374, up from $3.6404 a year earlier.

What it means for you

For most drivers, the 6-cent dip is modest. Prices are still well above last year's average of $3.0656, and AAA's tracker shows they ticked up again by Oct. 24.

Electric vehicle owners have seen steadier costs. AAA says public EV charging averaged 41 cents per kilowatt hour, the same as the week before.

Where you live makes a big difference. AAA's state averages show California at $6.08 a gallon and North Carolina at $3.55, a wide gap between the most and least expensive markets.

Practical steps

• Check prices before you go: AAA says drivers can look up current gas and charging prices along their route with the AAA TripTik Travel planner.
• Watch the daily average: AAA's live tracker updates the national average for gas and diesel each day.
• Compare by state: AAA publishes state-by-state averages that show where prices are highest and lowest.

What happens next

AAA says October is poised to be the priciest October for gas on record. That would follow similar records set in August and September. Crude oil prices near $100 a barrel will likely remain a key factor, AAA says, since they are keeping pump prices from dropping sharply.

FAQ

What is the national average for gas now? AAA's tracker showed $4.2957 for regular on Oct. 24.

Why did gas prices fall this week? AAA credits the move to winter-blend gasoline, which is cheaper to make.

Which state has the cheapest gas? North Carolina, at $3.55 a gallon, according to AAA's Oct. 22 report.

Which state has the most expensive gas? California, at $6.08 a gallon, AAA says.

Is gas at a record high? No. AAA's record for regular is $5.0165 a gallon. But AAA says October is poised to be the most expensive October on record.

Why aren't prices falling faster? AAA says crude oil nearing $100 a barrel, amid instability in the Strait of Hormuz, is keeping pump prices from dropping steeply.

What happened to oil prices this week? According to AAA, WTI crude fell 67 cents to settle at $97.15 a barrel at Wednesday's close.

Is demand for gas rising? Yes. Citing EIA data, AAA says demand rose to 8.98 million barrels a day from 8.40 million.

How much does EV charging cost? AAA says public charging averaged 41 cents per kilowatt hour.