PORTLAND, Maine — The average price of a gallon of regular gasoline in Maine fell another 1.3 cents in the last week, signaling a slowdown in the steady seven-month drop that brought the price to $1.37 less than one year ago.
The statewide average was about $2.10 per gallon Sunday, according to price data from GasBuddy.com.
The slight dip in the past week comes as some states, including Michigan, started to see the statewide average price jump back above $2.
Gregg Laskoski, a senior petroleum analyst with GasBuddy, said in a news release Monday that refineries have cut back, leading to a rise in the bulk price gas stations pay for fuel.
“A reduction in refinery output has been matched in recent weeks by sharp increases in wholesale gasoline prices,” Laskoski said, noting a 20-cent climb in wholesale prices from Jan. 7 to Jan. 30. “There’s no doubt now that the first-quarter climb is under way and is already being reflected in rising prices at the pump.”
Part of that increase is seasonal, as refineries begin producing a more expensive summer blend that also produces less carbon emissions. Laskoski said in a phone interview in early January that refineries tend to switch from winter blend production at the end of January.
That seasonal decline in prices was aided this year by new global influences of increased U.S. oil production and a decision by the Organization of Petroleum Exporting Countries, or OPEC, not to cut back on output to maintain prices as demand fell. That decision cut the price of Brent crude oil by more than half, down to lower than $50 per barrel.
Investors have also signaled they think oil prices have hit bottom, as futures for Brent crude oil rose $2.05 early Monday morning, to about $53 per barrel.
The slowdown for oil price drops is reflected in Maine at the stations offering the cheapest gas. Some stations dipped close to $1.90 in recent weeks, with the first two stations going below $2 in early January.
The lowest price in the state Monday was $1.96, two cents higher than the cheapest gallon in the state two weeks ago. Little budging in the low end of prices and rising oil futures signals drivers likely will not see prices dip any further in the state.
As of this week, the average price of gas in 25 states was lower than $2. GasBuddy and AAA both reported the national average at $2.05 for a gallon of regular gasoline.