The thinly traded holiday gasoline market bottomed out on December 24th with a NYMEX low of $1.2352 per gallon. Here we are a few days into the New Year trading at a high of $1.4146. Here’s what happened to push prices higher.
Good news for those traveling next week. Oil prices have fallen considerably which is impacting gas prices. Currently, the national average gas price is $2.68 a gallon. While this is higher than the price drivers paid last Thanksgiving, the national average was $2.52 a gallon, it’s still lower than this year’s high of $2.97 a gallon last Memorial Day.
The summer grade 7.8 RVP in Pittsburgh, PA gasoline specification requirement expired over the weekend. Now the Pittsburgh market can use the same gasoline specification (Conventional Gas) as most of the state.
Last weekend we all welcomed the month of September, Labor Day celebrations and the unfortunate realization that summer has ended. Though technically the summer doesn’t end until the equinox on September 22nd, the Labor Day weekend traditionally marks the end of summer for schools, as well as the close of the summer driving season.
As summer winds down and eases back into school, football, and cooler temps, less expensive higher Reid Vapor Pressure (RVP) grades of gasoline enter the distribution system.