Drivers saved an average of $5 every time they fueled up this week thanks to the continued dip in gasoline prices, according to AAA.
That should be a welcomed relief to drivers after gas prices surged at the end of summer, contributing to higher inflation in August and September. Nationwide gas prices dipped on average by eight cents to $3.56 for the week ending Oct. 19, AAA said. Pump prices have lost 32 cents since their 2023 peak of $3.88 a month ago. Prices could be even lower, but the ongoing armed conflict in Israel that has led to geopolitical concerns in the Middle East has kept oil prices high.
"While gas prices are falling about a penny a day, that feels like a glacial pace," AAA spokesperson Andrew Gross said. "The oil market is watching to see if the war between Israel and Hama widens, so the price is stuck at a rather elevated price in the mid-$80s per barrel. This, in turn, is slowing the decline in gas prices."
The West Texas Intermediate (WTI) – an oil price benchmark – remained unchanged at $86.66 after rising earlier due to concerns that the Israel-Hamas war could lead to reduced oil output from countries in the region. Still, those concerns have subsided since it appears the conflict will not spread across the Middle East for now, according to AAA. If oil prices remain steady or fall, drivers can expect further price drops at the pump in the weeks ahead.
One way to lower your overall cost of car ownership is by shopping for cheaper auto insurance to reduce your monthly premiums. Visit Credible to compare your options without affecting your credit score.
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Gas prices declined in most states even as oil prices stayed elevated because refineries have switched back to winter gasoline, according to GasBuddy head of petroleum analysis Patrick De Haan.
De Haan said in a video that by mid-September, most areas of the country switch off the summer blend of gas and back to winter gasoline, and with it comes a decrease in prices. Summer-blend fuel costs more than winter-blend fuel primarily because the production process takes longer. That price decrease is more prominent in some of the major cities like Chicago, St. Louis, Dallas and much of the Northeast because they have to use a more stringent type of summer gasoline, DeHaan explained.
"The downward momentum has indeed gained steam, with the national average declining over the last week with again virtually every village, town, city, region, and state seeing gasoline prices fall—with the added bonus that diesel prices have also declined," De Haan said in a statement. "While the price of oil jumped some 5% last week, I remain steadfast that additional declines are coming to gasoline prices the way the situation stands now but remain cautious that this depends on actions that are not foreseeable, mainly the conflict in the Middle East.
"For now, the national average is likely to soon fall to its lowest level in six months," De Haan continued. "I believe the national average still has some 15 to 35 cents of declining to do the way things stand now."
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Car insurance premiums have soared 17% this year and are set to go higher, but drivers could save money by making these three moves:
Installing special equipment that tracks a driver's behavior on the road could be a good move that may earn you a safe driver discount – if you have a good record.
Shopping for the best provider is another time-tested way for drivers to help reduce costs. Compare quotes from at least four to five companies before picking a policy, and reevaluate your policy every six months to ensure it still covers your needs.
Drivers can lower car insurance premiums by up to 15%, amounting to $258 in yearly savings for the average driver, through policies that offer discounts for low-risk behaviors, according to Insurify. These behaviors can include being a member of AAA or taking a driving safety class.
If you are looking to save money on your car costs, you could consider changing your auto insurance provider to get a lower monthly rate. Visit Credible to shop around and find your personalized premium without affecting your credit score.
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