Gasoline prices in Wisconsin are now averaging below $3 a gallon for the first time since last winter.
According to data from AAA, the average price per gallon of gasoline in the state fell from $3.37 a month ago to less than $2.98 on Monday. That’s also a significant drop from the same time last year, when the average price in Wisconsin was $3.66 per gallon.
In addition, prices are falling nationwide, from an average of $3.43 a gallon last month to about $3.21 on Monday, AAA said.
These are the lowest prices Wisconsin has seen since February 2024, data from GasBuddy.com shows, and they could reach the lowest nationwide prices in three years, according to Gas Buddy’s chief petroleum analyst Patrick De Haan said.
So, what’s causing this steep drop in prices at the pump, and what can Wisconsinites expect in the coming months? Here’s what you need to know.
Gas prices in Milwaukee are below $3 and continue to fall
According to AAA, average gasoline prices in the Milwaukee-Waukesha metropolitan area were about $2.90 per gallon on Monday.
This is down from about $3.02 a gallon last week, $3.44 a month ago and $3.60 this time last year.
Why are gas prices dropping in Wisconsin?
The gradual switch from more expensive summer gasoline with a lower butane content to cheaper winter gasoline with a higher butane content usually causes gasoline prices to drop each fall.
The Environmental Protection Agency requires refineries to produce summer gasoline from May 1 to Sept. 15, and retailers to sell it from June 1 to Sept. 15. Most stations across the country will switch back to winter gasoline on Monday, De Haan said.
However, in August, gas stations in Wisconsin and other Midwestern states were granted an exemption to switch to winter-grade gasoline early this year after a tornado-related outage at an oil refinery in Joliet, Illinois, sent gasoline prices soaring.
This time last year, refinery problems in other parts of the country were causing prices to be much higher than they are this year, De Haan said. “That’s why some states are suddenly looking at an 80-cent difference between today and a year ago. … Normally, if there are no refinery problems or hurricanes, what we’re seeing this year is what normally happens. Gas prices tend to peak in the spring, and as the summer progresses, gas prices tend to slowly decline.”
Even before the usual switch to winter gasoline on September 16, the reopening of schools and the decline in summer driving in late August means people are driving less, reducing demand for gasoline, De Haan explains.
Additionally, data from GasBuddy.com shows that crude oil prices are at their lowest levels in more than a year, further driving down gasoline prices.
How do gas prices change in the fall and winter?
“With most stations across the country switching to winter gasoline today, the outlook is positive, with the national average price dropping to $2.99 per gallon for the first time since 2021,” De Haan said.
De Haan said he expects gas prices in Milwaukee to remain below $3 for the rest of the calendar year, barring another refinery outage or other major global event. Prices could fall 10 to 25 cents per gallon in the coming weeks, he said.
“I don’t think it’s going to get much better than $2.60 or $2.50,” he continued. “I think we’re probably going to be in the mid to high twos for the rest of the year. If there are refinery issues or things get better economically, then we could see the higher end of that, or possibly a little over $3 a gallon.”
Where can I find the lowest gas prices in Milwaukee?
GasBuddy maintains a list of the cheapest gas prices in the Milwaukee area, based on reports from local GasBuddy users. As of Monday morning, the cheapest prices per gallon were found at Costco in Menomonee Falls ($2.59), Kwik Trip in Colgate ($2.59), Costco in Pewaukee ($2.59) and Kwik Trip in Sussex ($2.59).
The lowest price in the city of Milwaukee can be found at Sam’s Club on 124th Street ($2.69), while numerous other gas stations in Milwaukee sell gas for $2.73 per gallon.
Click here for a current overview of the cheapest gas prices in the Milwaukee area.
This article originally appeared on Milwaukee Journal Sentinel: How Long Will Gas Prices Stay Below $3 in Milwaukee and Wisconsin?
