Look for Sharp Drop in South Dakota Gas Prices This Fall
Lower gasoline prices are predicted. Most likely the drop will be most evident after Labor Day.
According to AAA South Dakota, average U.S. gas prices today are at the lowest levels for this time of year since 2004 due to the steep decline in the cost of crude oil. Aside from a refinery hiccup in Indiana, prices have been on the downward trend since the middle of June.
As evidence, AAA says crude oil prices have continued to sag due to persisting global oversupply and concerns about the health of the Chinese economy. China is one of the world’s largest and most rapidly growing economies but evidence of slower than projected growth in that nation is rippling through global markets, putting more downward pressure on the price of crude.
Gas prices should continue to fall this autumn due to declining demand and the switchover to winter-blend gasoline. South Dakota’s average price of gas is $2.71 per gallon, about 8 cents less than one month ago and 75 cents less than a year ago.
Across South Dakota, Vermillion’s pump price leads the pack at $2.46 per gallon. On the high end, drivers in Pierre pay an average of $2.89 per gallon.
AAA also says BP’s largest crude distillation unit at its Whiting, Indiana refinery is still under repair due to a malfunction reported on August 8. The company has yet to release a date they expect the unit to return to production although initially the repairs were to take approximately one month. Regional supplies are still uncertain due to the outage, but prices have moved lower over the past week as speculation has built that supply issues might not be as dire as first thought.
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