Mary Howland Sees $3.97 as Reasons For Falling Us Gas Prices Ease

US gas prices fell to $3.97 on Tuesday, and AAA says reasons for falling US gas prices include lower oil costs and a cheaper winter blend.

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Mary Howland Sees $3.97 as Reasons For Falling Us Gas Prices Ease

The national average price of regular gas fell to $3.97 on Tuesday, and that put reasons for falling US gas prices right at the pump for drivers in Watertown and beyond. The drop pushed the national figure below $4 a gallon for the first time since July 19.

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Mary Howland was among the drivers reacting in Watertown. “I said I’m so excited it’s under $4; it’s been a long time,” she said while getting gas, adding, “I am just happy. I’m going to fill up here and it’s always a little bit cheaper on Tuesdays, so yeah, I’m very pleased about it.”

AAA Sees Oil Costs Ease

Elizabeth Carey, the director of public relations for AAA Western and Central New York, said the move lower is coming from oil prices. “What we’re seeing is oil prices decrease and that’s being relayed to the pumps,” she said. Carey also said winter gasoline is typically cheaper than in the summer because the winter blend is cheaper to produce and demand is lower in the winter.

AAA said the national average had been below $4 last on July 19, when it was $3.99. The 113-day stretch since then was the second-longest period on record. AAA said the longest run below $4 lasted 158 days from March 6 to August 10, 2022, after Russia invaded Ukraine.

Watertown Prices Still Vary

Lower national prices did not erase the gap between nearby markets. John Scanlon said the difference was enough to steer him toward Watertown after shopping elsewhere. “It’s 40 cents a gallon cheaper than Clayton. I had to do a little shopping and figured I might as well fill my tank up,” he said.

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Lowville still posted a price of $4.25 for customers who paid with cash, and Nathan Terrell said prices in St. Lawrence County felt out of step with the national number. “I travel to and from Alaska fairly frequently and gas prices here are comparable to what they are up there. Only in this area, though,” he said.

Drivers in Watertown now have the rare sight of signs starting with a 3 again, but the spread across nearby towns shows the drop has not reached every market evenly. Carey’s explanation points to a simple chain: cheaper oil, then cheaper gasoline, though how far oil fell before the pump prices followed is not explained.

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Chartered financial analyst writing on equity markets, cryptocurrency, and Federal Reserve policy. MBA from Wharton School of Business.