NEW YORK (MainStreet) Travelers who are driving out of town for the Labor Day weekend can take advantage of the recent steady decline of gas prices reaching a four-year low.
Prices at gas pumps across the country are averaging $3.42 a gallon, according to Gasbuddy.com. The lowest price is in South Carolina where gasoline prices are $3.15 a gallon, $3.23 in New Jersey and reaching $3.83 in California. The highest gas is in Hawaii at $4.28.
Regular gasoline retail prices decreased to an average of $3.61 per gallon in July, which is 8 cents per gallon below the average price in June, the Energy Information Administration said. Regular gasoline retail prices are projected to continue to drop to an average of $3.30 in December.
The EIA expects regular gasoline retail prices to average $3.50 in 2014 and $3.46 in 2015, compared with $3.51 in 2013.
Gasoline prices will continue to retreat and could reach a new four-year low, said Chris Faulkner, CEO of Breitling Energy, a Dallas oil and gas exploration and production company. The national average last week was $3.44 per gallon, which was 15 cents cheaper than then same period a year ago.
"We anticipate nearly 35 million Americans traveling this Labor Day, which is the most that we have seen in six years, which means the price at the pump is definitely driving those decisions," he said.
The catalyst in the steep decline in prices is because record high oil production is "pushing prices down across the board" as the world "clearly has more oil than it currently needs at the moment," Faulkner said.
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"We saw oil prices continue to retreat as the market continued grappling with signs of an abundance of crude and tensions easing around the world," he said. "All signs point to an oversupply of crude oil, and this will impact the price of oil and in turn push down the price of gasoline, which is something every American has been waiting for."