A Sheetz customer gets gasoline at a gas station in Plains, Pennsylvania, U.S. October 19, 2022.
Aimee Dilger | Reuters
Gasoline prices are now cheaper across the U.S. than they were a year ago, and the price per gallon could fall below $3 for most Americans by the end of the year.
According to AAA, the national average for a gallon of unleaded gasoline was $3.329 on Thursday, below the $3.343 a year ago, before Russia’s invasion of Ukraine. Unleaded gasoline was at a record $5.01 per gallon June 14 and stayed high through the summer and fall.
Gas prices fell 15 cents per gallon in the past week and are down from $3.80 a gallon a month ago.
“For the next 55 days, it looks good for consumers but ugly for refiners,” said Tom Kloza, global head of energy analysis and co-founder of OPIS, formerly Oil Price Information Service. “They’re running refineries so hard because of the diesel shortage that they’re making too much gasoline. We’re running about 7% behind last year in terms of demand.”
Kloza expects to see gasoline below $3 a gallon for most Americans, before prices start to tick back up when refiners begin to produce summer blends in February. “You just can’t run refineries at these high rates and make too much gasoline for the summer because there’s no place to put it. I think we see the lowest prices of 2023 in the next 55 days,” he said.
Patrick De Haan, head of petroleum analysis at GasBuddy, expects the national average will fall below $3 a gallon by Christmas, barring an event that drives oil prices higher. Even with OPEC+ reaffirming a 2 million barrel a day production cut this past week, oil prices have still fallen.
West Texas Intermediate oil futures were trading at $73.81 a barrel Thursday morning and are down 1.9% for the year so far. De Haan said a wild card for oil is the timing of the reopening of the Chinese economy, after Covid shutdowns. That would push demand sharply higher for oil and other commodities.
But for now, gasoline prices are in decline.
“$2.99 looks like a pretty strong shoe-in at this point. The question is if it’s going to be at 11 p.m. on the 23rd or 11 a.m. on the 24th,” De Haan said. Gasoline prices are wide ranging by region, with the average at $4.66 per gallon in California but already below $3 per gallon in some states, including Texas, Louisiana, Tennessee, Georgia, Mississippi, Arkansas and Alabama.
De Haan said the price could drop as low a $2.75 per gallon before it begins to rise again later in the winter. Refinery utilization was more than 95% last week, an unusually high level for this time of year, he added.
“Gasoline inventories saw a massive build. That’s probably going to provide refiners a little bit of ammunition to slow things down,” De Haan said.
Kloza said the U.S. currently has 26 days of supply, more than ample with the decline in demand to a four-week average of 8.4 million barrels a day.
Diesel inventories have also been growing and that could help drive down prices. The average price for diesel was $5.00 per gallon, down from $5.81 in June. Diesel is in short supply globally because Russia was a large oil and fuel exporter to Europe. As a result, diesel’s price decline has been much shallower, and its price is far from the average $3.61 a gallon it was a year ago.
Before the invasion of Ukraine, Russia exported 2.4 million barrels a day of refined petroleum products, including more than 1.1 million barrels a day of diesel exports, according to Bank of America. About half of the refined products went to Europe.
De Haan expects diesel could eventually drop below $4. “I think diesel could fall into the $3s,” he said. “That’s the bigger factor right now in inflation. ... Gasoline is now lower than its year ago level. Gasoline has been deflationary. Diesel could drop another $1 to $1.50 a gallon,” he said.
Rivian will power its DC fast-charging network with renewable energy company RWE’s Champion Wind farm in Texas.
The two companies just signed a 15-year power purchase agreement (PPA) for electricity from RWE’s repowered Champion Wind in Nolan and Mitchell counties, west of Abilene.
The 127-megawatt (MW) Champion Wind is getting new turbine nacelles and blades, which will extend the wind farm’s lifespan. Originally commissioned in 2008, the wind farm is expected to be fully upgraded by mid-2025. When the wind farm is back online, it’ll be capable of generating enough electricity to power nearly 1 billion miles of renewable driving every year for Rivian, or the equivalent of powering 36,000 homes annually in Texas.
This wind power is set to support Rivian’s DC fast-charging Adventure Network with renewable energy. Rivian has set a specific goal to enable 7 billion miles of renewable driving.
Paul Frey, Rivian’s VP of propulsion, charging & adventure products, said, “Champion Wind is a powerful enabler for Rivian drivers to become active participants in building a cleaner grid every time they charge their vehicle. This project shows the potential to meaningfully decarbonize the grid and support a more circular economy through reuse and recovery of existing infrastructure, all while maintaining highly competitive economics.”
Siemens Gamesa is supplying 41 turbines with new nacelles and blades on existing towers. The nacelles and blades are being manufactured in the US. In addition, as part of the repowering project, six new Siemens Gamesa turbines rated at 3.1 MW each will also be added to the wind farm.
The decommissioned wind turbine blades from Champion will be repurposed. RWE is working with REGEN Fiber, an Iowa-based company that recycles wind turbine blades to make reinforcement fibers for the construction industry. Those fibers are then used in concrete to add strength and durability, extending the lifespan of infrastructure.
RWE is the third-largest renewable energy company in the US.
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Rivian is bringing back its “All-Electric upgrade offer” from now until November 30th, but with some changes to the program.
Earlier this year, Rivian offered $1k-$5k off a new Rivian if you trade in an old gas car, from April to June. The offer was available for specific vehicles, and with a sliding discount scale based on which Rivian vehicle you order.
Now the program has come back, but with quite a few changes from the previous version.
As of today, October 31, if you buy a new Rivian R1T or R1S new inventory vehicle from the R1 Shop, you can get a $3,000 discount if you also prove that you own or lease a qualifying gas-powered vehicle.
This is simultaneously simpler, more lenient, and more restrictive than the previous offer, in various ways.
First, the discount is a flat $3k (or $4,100 CAD), rather than having a scale based on what model you order, which is more streamlined.
Second, the discount applies to every gas or hybrid vehicle owner – you don’t have to trade in your vehicle, and you’re not limited to a specific list of vehicles. Just prove that you own or lease a gas car (copy of registration, proof of insurance, etc), and you get the discount.
However, third, it’s more restrictive as to what vehicles you can purchase. The current offer applies only to Rivian new inventory vehicles in the R1 Shop, and excludes demo vehicles, pre-owned vehicles, or custom build vehicles. It also does not apply to Rivian’s base Dual Standard models, but everything else is fair game.
In order to qualify, you need to place your order between today and November 30, and you must take delivery of the vehicle before December 31. Check out all the specifics of the offer on Rivian’s site here.
Electrek’s Take
Rivian is clearly trying to round out its yearly numbers with this offer, as the market for pricy cars is somewhat soft with increased interest rates. It just slightly lowered its annual delivery guidance, now planning to see roughly similar deliveries this year than last.
But its R1 vehicles just got a huge refresh to help the company with costs and to offer new features. The R1S is still one of the most popular high-priced vehicles in the US, and the company’s products earn universal acclaim from owners.
The interesting thing is that Rivian had a similar offer earlier this year, before the refresh, to help clear out inventory of older vehicles. It didn’t see it fit to offer the discount last quarter, perhaps buoyed by the updated model, but after a rough Q3 of deliveries it now brought the offer back.
Rivian is still guiding to reach a slight gross profit in Q4, though we’re sure we’ll hear more about that in its upcoming quarterly earnings next week.
If our coverage of Rivian has helped inform you about the brand, feel free to use our Rivian referral code to get 6 months of free charging or 750 Rivian Rewards points with your purchase.
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Hyundai’s new low-cost EV is getting a bold design upgrade. The Hyundai Casper EV Cross was spotted for the first time in public, revealing new design elements.
Although we knew a rugged “Cross” variant was headed to Europe, this was the first time the domestic model was spotted with an upgraded design.
The Inster EV is Hyundai’s overseas version of its domestic Casper Electric model. In Korea, Hyundai’s Casper EV starts at around $20,000 (27.4 million won). Hyundai said its new EV can be bought for under $8,000 (10 million won) with subsidies.
In Europe, it starts at under $27,000 (25,000 euros). The Cross variant is built for “those looking for an EV with a more adventurous look,” Hyundai said.
Although it offers the same versatility as the standard model, the Inster EV Cross gains rugged design elements, including new front and rear bumpers, black claddings, skid plates, a roof rack, and more.
Here’s our first look at the Hyundai Casper EV Cross
After a rugged new variant with the Casper EV logo was spotted in Korea for the first time, a Cross model is expected to debut shortly.
The new video from HealerTV reveals added design elements, including the roof rack and more aggressive black trim.
The reporter notes that the Hyundai Casper EV Cross has a “much more mechanical and futuristic feel than the existing model.”
It almost appears “robot-like” with an added off-road feel. The Inster EV Cross gets up to 223 mi (360 km) WLTP driving range. In Korea, the Casper Electric is rated with up to 195 miles (315 km) driving range.
Although Hyundai Casper (Inster) EV is not expected to launch in the US, the low-cost model was spotted driving in California for the first time this month.
In the meantime, off-road fans can get in line for Hyundai’s upgraded 2025 IONIQ 5, which will be available with a rugged XRT trim. The 2025 IONIQ 5 XRT model was also recently caught testing ahead of deliveries.
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