Gasoline Prices Near Five Year Lows on Inventory Swells and Weak Demand

Inventory and Supply Glut

Latest data confirms a large build in US gasoline stocks, significantly easing any near-term supply concerns. Refiners continue to process ample crude feedstock, and with the winter driving season at its lowest point, the product is piling up. This oversupply scenario is the dominant force pushing prices lower.

Consumer Demand Softness

Implied gasoline demand, as measured by product supplied, continues to trail last year and long-term averages. This suggests economic uncertainty and changing consumer habits are reducing miles driven, amplifying the seasonal slump and maintaining the pressure on wholesale prices.

Outlook for the Pump

Retail gasoline prices are expected to follow the futures market lower, offering relief to consumers. The current low-price environment is likely to persist until refinery maintenance season begins in Q1 2026, which temporarily tightens supply.