News Summary
Rhode Island’s average price for regular unleaded gasoline has dropped to $3.03 per gallon, reflecting a broader decline across the Northeast. Contributing factors include a seasonal drop in demand and an anticipated surplus in supply. Gasoline inventories have surged, while production has seen a slight decline. Despite the challenges faced by refineries and fluctuations in demand, consumers can expect ongoing price stability as the fuel market adjusts heading into fall.
Rhode Island Sees Continued Drop in Gas Prices
The average price of regular unleaded gasoline in Rhode Island is continuing to decrease, reflecting a broader trend across the Northeast. The recent decline is attributed to a combination of seasonal patterns and an anticipated surplus in supply that is expected to outpace demand in the latter half of the year. Currently, gasoline prices in Rhode Island have dropped by three cents from last week, bringing the average to $3.03 per gallon.
Gasoline demand has notably decreased, with figures showing a fall of 440,000 barrels per day, now sitting at 8.5 million barrels per day, according to the Energy Information Administration (EIA). This decline in demand mirrors seasonal expectations but also marks the second-lowest weekly demand recorded since May. In terms of supply, domestic crude oil stocks have risen by 1.8 million barrels while gasoline inventories have surged by 4.1 million barrels per day, indicating a robust supply to meet consumer needs.
Refinery Operations and Market Dynamics
Despite the decrease in demand, gasoline production remains adequate. However, it did experience a decline of 363,000 barrels per day, resulting in a current output of 9.34 million barrels. This reduction in production coincides with decreasing refinery utilization rates, which have dropped from 93% to 91.4%. Refineries are gearing up for maintenance ahead of the fall season, but it is predicted that lower gasoline demand will mitigate potential price increases typically associated with seasonal maintenance.
In the Northeast, gasoline inventories have seen an increase of 1.6 million barrels. Alongside this, prices for oil and gasoline face additional downward pressure due to forecasts indicating a potential global oil oversupply. Recently, OPEC and allied producers have decided to raise production by 137,000 barrels per day beginning in November, thus reversing over 2.2 million barrels per day in production cuts that were initially implemented in 2023.
Current Prices and Regional Comparisons
In Rhode Island, the current average gas price of $3.03 is 12 cents lower than it was a month ago. However, it is still six cents higher compared to the same day last year. This places Rhode Island’s average gas price at 10 cents below the national average, which currently stands at $3.13. Among the lowest gas prices in the United States, Oklahoma and Mississippi report prices of $2.58 and $2.67, respectively. On the opposite end of the spectrum, California and Washington have the highest gas prices recorded, at $4.65 and $4.51, respectively.
Rhode Island ranks as the 22nd highest state when it comes to gas prices in the nation. As gasoline prices fluctuate, the local community continues to feel the impacts of wider economic conditions affecting the fuel market.
Overall, the combination of reduced demand, increased supply, and seasonal adjustments, along with OPEC’s strategic production changes, indicate that consumers can expect ongoing price stability in the near future. The current market dynamics suggest that while prices may not significantly spike during typical maintenance periods, close monitoring will be essential as the industry heads into the fall months.
Deeper Dive: News & Info About This Topic
- The Westerly Sun
- Wikipedia: Gasoline
- What’s Up Newp
- Google Search: Gas prices Rhode Island
- WPRI
- Google Scholar: Gas prices Rhode Island
- Turn to 10
- Encyclopedia Britannica: Gasoline
Author: STAFF HERE PROVIDENCE WRITER
The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.
