Beaufort County, national gas prices expected to remain low in 2016
Consumers who have grown accustomed to saving money at the pump can expect that to continue in the new year.
Average retail gas prices in South Carolina fell 1.8 cents per gallon in the past week, with the state average now at $1.75 a gallon, according to GasBuddy's daily survey of 3,028 gas outlets in the state. The current average for Beaufort County is $1.90 a gallon.
Next year's gas prices are expected to be similar to those in 2015.
"These are the lowest prices in six years," said Gregg Laskoski, senior petroleum analyst at Minnesota-based GasBuddy. "There is a global glut in oil."
It is expected, however, that gas prices will rise incrementally during the first half of the year, as traditionally occurs. But Laskoski doesn't expect prices to rise above $3 a gallon. He also expects them to begin to drop again in the second half of 2016, keeping the annual average price low.
Gas prices tend to be 40 to 50 cents higher during the summer, when refineries are required by the U.S. Environmental Protection Agency to produce a summer-blend gasoline, which Laskoski said burns cleaner.
That fuel is more expensive than winter-blend gasoline, and switching between the blends requires significant work at refineries, which in turn drives up the price at the pump in the spring.
"Prices rise in the first quarter every year and stay high in the second quarter," Laskoski said. "By Labor Day, retailers are switching to the winter-blend gasoline, which is cheaper."
The national average, at $2 a gallon, has not changed, despite drops over the past week in 38 states.
South Carolina's average gas price is the fifth lowest nationally, bringing some relief to businesses that require heavy gas use.
Krista Anderson, who launched delivery service ToGo Dish in Beaufort almost a year ago, said lower gas prices are a plus for her business.
With the prices so low, Anderson said she has enough independent contractors signed on to make lunch and dinner deliveries in northern Beaufort County, with the delivery fee solely based on how far the deliverer must travel.
If gas prices were to surge significantly, Anderson said, it would be a challenge to keep drivers and to keep delivery fees low.
"If drivers were complaining about gas prices, that would definitely affect my business," she said. "There's only so much people are willing to pay."
Follow reporter Ashley Fahey in Twitter at twitter.com/IPBG_Ashley.
Related content:
- Low gas prices to contribute to strong Christmas travel season, December 21, 2015
- Local gas prices higher than in rest of state, September 4, 2015
- Low gas prices expected to lead to more drivers on the road this Labor Day weekend, September 2, 2015
This story was originally published December 28, 2015 at 5:42 PM with the headline "Beaufort County, national gas prices expected to remain low in 2016."