With the busy holiday travel season ahead, Milwaukee and Green Bay gas prices drop below $3
GREEN BAY - Some Wisconsin consumers got an early taste of holiday tidings this week as regular gasoline prices dropped below $3 per gallon.
It appears winter's approach sent a chill through the hot gasoline prices of the summer.
Consumers on Monday saw the price of a gallon of regular gasoline fall below $3 at some convenience stores in metro areas that include Milwaukee, Green Bay and Appleton while AAA Wisconsin reports the statewide average gasoline price continues to drop, from $3.23 a week ago to $3.17 Monday to $3.15 Tuesday.
Wisconsin gasoline prices have taken consumers on a rollercoaster ride for the last year, ending 2021 around $3 per gallon before spiking in February when Russia invaded Ukraine. Prices continued to rise due to increases in demand, refinery shutdowns and inflation. The statewide average price peaked in mid-June at $4.93.
Now, current market trends point to Wisconsinites paying about the same price for gasoline as they did a year ago — maybe even a little less. Gas prices in the U.S. tend to rise in the summer, when more people travel and stores have to sell a more expensive form of gasoline. They then decline in fall and winter, when travel demand subsides and stores can stock a winter blend that is cheaper to produce.
Molly Hart, a spokesperson for AAA - The Auto Club Group, said gas prices continue to fall across Wisconsin and the United States. It's a trend that should continue into the December holiday travel season barring a change in global demand, for example if China's economy emerges from the current COVID slowdown, or events that can impact production, such as a refinery shutdown or severe weather.
"It is possible without any outliers or unforeseen situations, it could even be cheaper than last year for many Americans by Christmas," Hart said. "The opposite can be true: If COVID fears blow over and the Chinese economy starts to hum again, expect oil prices to rise again."
Here's a look at Tuesday's average gasoline price in various regions and statewide:
Wisconsin | $3.15 |
Appleton | $2.98 |
Fond du Lac | $3.20 |
Green Bay | $3.12 |
Madison | $3.25 |
Manitowoc | $3.14 |
Milwaukee-Waukesha | $3.10 |
Oshkosh | $3.03 |
Sheboygan | $2.93 |
Stevens Point | $3.30 |
Wausau | $3.15 |
Wisconsin Rapids | $3.27 |
A 'huge gift' for the holiday travel season?
Wisconsin is not alone in seeing gasoline prices drop and current market trends could mean motorists see a national average around $3 in time for the busy holiday travel season in December.
GasBuddy, an online fuel price tracker, on Monday reported the national average price dropped 12 cents last week to $3.52, the lowest level since February when Russia invaded Ukraine, sending global oil and gasoline prices higher. The U.S. Energy Information Administration said in October oil accounted for 54% of the price you paid for a gallon of gasoline followed by refining costs (22%), taxes (13%), and marketing and distribution (11%).
Patrick DeHaan, GasBuddy's head of petroleum analysis, expects global oil prices, a major driver of gasoline costs, to continue to drop based on weak demand from China and the Biden Administration's decision to permit Chevron to produce and export oil from Venezuela.
"All the metrics look very positive for motorists as this week is likely to continue seeing falling gasoline prices, with many areas falling to the lowest level since Russia’s invasion of Ukraine in February," DeHaan said. "It’s entirely possible the national average price of gasoline could fall under $3 per gallon by Christmas, which would be a huge gift to unwrap for motorists after a dizzying year at the pump.”
Hart, the AAA spokesperson, said the volume of people traveling during the Thanksgiving holiday matched pre-pandemic levels of more than 1.1 million Wisconsinites and about 54.6 million Americans traveling more than 50 miles for the holiday, about 89% of them driving to their destination. Hart said it's a good sign that the upcoming Christmas travel season also will return to pre-pandemic levels of activity. AAA will publish a detailed holiday travel season forecast in two weeks.
"I think people are more comfortable getting into the car, taking a road trip of 50 miles or more from home," Hart said. "With what we saw at Thanksgiving, we anticipate we will see high numbers again for the Christmas holiday season."
Contact Jeff Bollier at (920) 431-8387 or jbollier@gannett.com. Follow him on Twitter at @JeffBollier.
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This article originally appeared on Green Bay Press-Gazette: Gas prices in Milwaukee, Green Bay down to $3. Will they stay there?
