Why are MA gas prices falling slower than national gas prices?
The good news is that gas prices are down across the country, but you may be wondering why prices here in Massachusetts aren’t keeping pace with the drops being seen in other states.
Right now, AAA says the average for a regular gallon of gas in Massachusetts is $4.34, down from the record high of $5.05 a gallon in mid-June.
A month ago, the price of gas in Massachusetts was $4.75 and it was $4.68 nationally - a difference of seven cents.
Fast forward to now, and the difference in price here in Massachusetts and nationally is 33 cents, with our current average at $4.34, compared to $4.01 nationally.
So, what gives?
We reached out to AAA for some thoughts on the disparity. Mary Maguire from AAA says geography is a key point.
“Many southern and midwestern states have fallen into the 3′s in the last month, so the national average has dropped more quickly,” said Maguire. “The closer to the refineries, the lower the price. So the Gulf Coast states, for example, tend to have lower prices, (due to) lower shipping and transportation costs.”
“There’s been a fairly wide span between the national average and the MA average for some time now. There are a few reasons,” said Maguire
“First of all, the national average is lower because it factors in many states in the south and Midwest where prices have already dropped into the 3 dollar a gallon range, which brings down the national average,” said Maguire.
“New England states import a fair amount of oil and gas from Europe and Canada, which drives up prices for us,” according to Maguire. “We also live in a densely populated state with a lot of demand for gas. As far as price disparities go, when prices are falling as they are now, some retailers hold their prices higher for longer than others.”
Maguire says some retailers lower their prices more quickly and figure they will make up for the price drop with a higher volume of customers.
“For example, most prices in my neighborhood are in the $4.49-$4.59 range at this point,” said Magure. “But if I drive just a few miles, I can buy gas at $4.03, which is what I do, and the station is always crowded. So it literally pays to shop around.”
In a recent survey, AAA said almost two-thirds of U.S. adults have changed their driving habits or lifestyle since March. Drivers’ top two changes to offset high gas prices are driving less and combining errands.
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