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Gas Price Forecast: Less Pain at the Pump Expected

 by Ruth Schneider   Posted on October 2 2013

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Finally, we've reached the portion of the year where gas prices traditionally start to decline. This year might be especially generous to drivers, with prices expected to hit the elusive $3-mark by the end of October.

The only exception may be California, were refinery issues may prevent prices from dropping as low as $3. Back around Labor Day, three refineries experienced production issues, which has since been mostly resolved.

The current average gas price nationally is hovering around $3.40. That's down more than 40 cents from this time in 2012, according to AAA.

"Gasoline now typically sells for just a few dollars more than raw crude costs," Tom Kloza, GasBuddy's chief oil analyst told NBC News. "They?ll go below $3.00 anytime soon."

There's a couple reasons for this. First, the US is producing record supplies. In addition, Gasoline sold in colder temperatures is cheaper to produce. (It's not as pure as summer blends and is worse for the environment, as well.) The best news is there have not been any major disruptions in production this year from Gulf Coast hurricanes. (Thank you, Mother Nature.)

If our collective luck holds, AAA said the trend should continue through the end of the year.

If we're not so lucky, CostHelper covers prices for fuel-efficient vehicles.

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