Average pump price drops to $2.40 in Kansas; national average falls five cents to $2.62
TOPEKA – Kansas is among the majority of states across America with declining gas prices this week, as the nation’s gasoline supply and distribution continues to recover after hurricanes Irma and Harvey. Kansas’ average price at the pump dropped five cents this week to an average of $2.40 a gallon, the sixth lowest state average in the country, reports AAA Kansas. This week’s five-cent drop follows last week’s four-cent gas price decline. The state’s average per-gallon price is 22 cents less than the national average.
This week’s Kansas cities with the state’s gas price extremes are:
HIGH: Glen Elder (Mitchell County) – $2.70
LOW: Waverly (Coffey County) – $2.21
According to AAA Kansas, Wichita, with a $2.31/gallon pump prices ranks as the 12th lowest metro area in the nation. Of the 10 Kansas cities regularly highlighted by AAA Kansas (see chart below), all of their gas prices fell in the past week, except Emporia ($2.48), which saw a two-cent increase. Salina (-12 cents), Lawrence (-10) and Wichita (-8) led the way with the largest price declines.
National Perspective
As South and Southeast states recover from Hurricanes Harvey and Irma, motorists in 45 U.S. states are paying less for a gallon of gas on the week. At $2.62, today’s national gas price average is the cheapest in 14 days and five cents less than last week.
“Gas prices are dropping as the situation with refineries, pipelines and gasoline deliveries is positively progressing,” said Jennifer Haugh, AAA Kansas spokesperson. “It looks like pump prices will continue on this declining trend into the coming weeks as the regions affected by Irma and Harvey resume normal operations.”
Midwest motorists are benefiting the most with a few states – Indiana, Michigan and Ohio – seeing gas prices plummet by the double-digits inside of seven days. Meanwhile, some states in the West Coast and Rockies are seeing gas prices increase.
As gas prices drop for the majority of the country, so does the nation’s gasoline inventory. The latest Energy Information Administration (EIA) report identifies the latest draw of 8.4 million bbl as the highest on record, much of which can be attributed to motorist fueling up in the droves in anticipation of Hurricane Irma.
“Next week’s EIA report may bring another record-demand level as a continued result of Irma, but demand is expected to sharply decline across the country by the end of September,” added AAA Kansas’ Haugh.
Florida Gas Supply & Gulf Coast Refineries
Last week, at $2.73, Florida’s saw its highest gas prices since December 2014. The spike came as many gas stations faced outages as power was down and roads impassable. The good news is that in the last seven days, the state’s average has shaved off one cent. In addition, ports are open and receiving steady streams of tanker shipments as state officials continue to work with gasoline trucker and shippers to ensure timely delivery of product to retail stations. Reports indicate that the gas station gasoline outage situation is improving as stations receive deliveries.
Similarly, positive progress is being seen in the Gulf Coast. According to the Department of Energy, a total of six Gulf Coast refineries are operating at reduced rates, which is one more refinery than last week. These six facilities make-up 13 percent of refining capacity in the U.S. Five refineries continue to operate at reduced rates and three remain shut down, which represents a total of 10 percent of U.S. refining capacity.
It will likely be a few more weeks before the regions affected by Irma and Harvey are back to normal operations.
Great Lakes and Central States Report
The Midwest and Central states are seeing some of the largest declines in gas prices: Indiana (-18 cents), Michigan (-15 cent), Ohio (-11 cents), Illinois (-10 cents), Kentucky (-10 cents), Missouri (-7 cents) and Wisconsin (-7 cents). The region is also selling some of the cheapest gas in the country: Missouri ($2.34), Ohio ($2.37), Kansas ($2.40) and Indiana ($2.41). Parts of the region saw gas prices spike alongside Harvey hitting the Gulf Coast. However, with pipelines resuming operations as of late, motorists are seeing gas prices tumble. As we move into fall and gasoline demand drops-off, gas prices could reach the lowest of 2017.