Gasoline prices have been on a downward trend as oil prices decline and gasoline futures (RB=F) approach three-year lows.

The national average at the pump on Wednesday sat near six-month lows at $3.32 per gallon, $0.15 lower than a month ago and $0.49 less than exactly one year ago, according to AAA data.

"Combined with the end of the summer gasoline driving season in the USA along with a so far quiet hurricane season, oil prices simply collapsed, and that decline was led by weakness in gasoline," Andy Lipow, president of Lipow Oil Associates, told Yahoo Finance on Wednesday.

Demand for driving fuel last week sat below last year's levels, according to the latest government data.

The national average is expected to fall further as most of the country switches to a less expensive winter-grade gasoline later this month.

"There is a good possibility that the average national retail price of gasoline hits $3 per gallon by the end of the year," he added.

As of Wednesday, the average retail price in nine states sat below $3 per gallon, with half the country likely touching those levels by the end of September, Lipow predicted.

Oil fell 4% on Tuesday, erasing the commodity's year-to-date gains amid concerns over China's economy and additional supply expected from OPEC+ this fall. The oil alliance has indicated it would roll back some of its voluntary production cuts starting in October.

On Wednesday, West Texas Intermediate (CL=F) hovered below $70 per barrel, while Brent (BZ=F), the international benchmark, traded around $73 per barrel.

"The low prices ... may force OPEC+ to rethink its policy and it would not surprise me if they changed course and stuck with their existing production levels," wrote Lipow in a note to clients.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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