Drivers across the metro area have been enjoying some of the lowest gas prices seen in years, even with a recent uptick, some are wondering just how much lower prices can go.
According to AAA’s Don Redman, the savings at the pump have been a welcome break for families. Some stations are hovering just above two dollars a gallon, with the average for regular in New Orleans under $2.45 per gallon today.
“The low prices have been great for families,” Redman says. “But let’s not ask for too much.”
Redman says while the idea of gas dipping below two dollars is tempting, it’s unlikely as the market begins to move out of the seasonal slow period.
“It’s going to be very hard to get under two dollars as we move out of the slow season,” he says.
He explains that gas prices are heavily influenced by global headlines, including geopolitical tensions that can quickly shift market confidence.
“The market reacts to the news of the day,” Redman says. “What’s happening in Iran has caused some concern.”
Still, Redman says several factors are helping keep prices relatively stable. Crude oil storage levels remain high, which helps prevent sharp spikes at the pump.
“Storage is full, and that’s helping provide some stability,” he says.
Redman adds that while concerns over Venezuela didn’t have as much impact as some expected, oil from the Gulf region continues to play a role in regional fuel pricing.
As the transition from winter-grade to summer-grade fuel approaches, Redman says drivers should enjoy the current prices while they can.
“These are good prices,” he says. “Enjoy them while you’ve got them.”