Are gas prices FINALLY going to drop?

Well, the good news is we’re about to see a ‘short-term’ drop in prices with the move to Winter Blend gas.

What is winter blend and why is it cheaper?

This blend has a higher combustion rate allowing it to ignite easier in colder temperatures. To allow for a quicker and higher combustion rate, fewer additives are used to make the gas which makes it less expensive to produce and less expensive to sell. The winter blend of gas is usually available for sale between September 15th and April 30th.

It usually takes a couple of weeks for the winter blend of gas to be moved to local gas stations and most gas stations won't start selling the winter blend of gas until their current summer blend of gas is gone. This could take a couple of days or a couple of weeks. Usually, the biggest drop in the gas price comes at the end of September through the beginning of October.

The good news is that we have seen the average price of a gallon of gas already drop to below $4 per gallon and with this switch over to the winter blend of gas, we could see the price drop to levels we haven't seen in months.

Will Gas prices continue to drop?

According to CBNC, the relief may be short-lived:

“The global energy market remains on edge, and there are a number of factors that could push prices higher in the coming months. 

Refiners are running full out to keep pace with demand. A hurricane or other event that brings refinery outages could push up gas prices since there aren’t alternatives readily available as Europe also looks for petroleum products.

The U.S.′ historic release of barrels from the Strategic Petroleum Reserve will end this fall, taking some supply off the market. Additionally, the SPR will need to be refilled. A rebound in economic activity in China could also boost demand for petroleum products.”

Let’s hope they are wrong. Here at Team Automotive Staffing, we’ll be keeping a close eye on this for you.