The statewide gas price average in Texas is $1.53 for a gallon of regular unleaded fuel, according to the AAA Texas Weekend Gas Watch. That price is four cents less than this day last week and is $1.06 less per gallon compared to this day last year. Of the major metropolitan areas surveyed in Texas, drivers in Midland are paying the most on average at $1.78 while drivers in Sherman/Denison are paying the least at $1.17 per gallon. The national average price for a gallon of regular unleaded is $1.79, which is four cents less compared to this day last week and $1.06 less than the price per gallon at this same time last year.
The statewide pump price average continues to sit at the cheapest level since February 2016. This downward trend should continue as crude oil trades at record low prices, even hitting unprecedented negative figures earlier this week. Gasoline supply is very high across the country with many storage facilities at capacity. However, AAA doesn’t expect gas prices to fall into negative territory as many factors go into the price of a gallon of gas, including transportation, marketing as well as retailers set individual prices at gas stations.
“It is no surprise that gas prices are falling around the Lone Star State due to the demand destruction caused by COVID-19,” said AAA Texas spokesperson Daniel Armbruster. “Oil prices traded in the negative for the first time ever earlier this week, but gas prices are not forecast to go negative as there are several components which go into a gallon of gasoline.”
Refinery utilization dropped to just under 74% in the Gulf Coast region last week, according to the U.S. Energy Information Administration (EIA). At the national level, refinery utilization sits at 68%. U.S. Gasoline demand rose slightly to 5.3 million barrels per day last week. That’s up from the nearly 5.1 million barrels per day the week prior but still far-off from the nearly 9 million barrels per day just a month ago. To offset decimated demand levels, U.S. refiners are reducing production. Three refineries have even closed: Come-by-Chance, Canada; Gallup, New Mexico; and Marathon Petroleum's Martinez, California refinery. While the reductions and closures will help, they will not balance the glut of U.S. gasoline stocks against record-low demand rates.
Prices up to date at press time using market prices posted at 3:41 a.m. Motorists can find current gas prices along their route with the free and revamped AAA App for iPhone, iPad and Android. The app can also be used to map a route and learn traffic conditions along that route, find discounts, locate parking, book a hotel and request and track AAA roadside assistance. Learn more at www.AAA.com/mobile.
To help members and non-members identify quality auto repair shops that can assist in the maintenance and repair of their vehicles, AAA offers the Approved Auto Repair program as a free public service. AAA-approved repair facilities meet and maintain high professional standards for training, equipment, cleanliness and customer service. Motorists can look for the Approved Auto Repair sign at local auto repair facilities, or search for a nearby AAA-approved shop online at AAA.com/Repair. AAA Texas branch offices throughout the state can be found by visiting www.AAA.com. Follow AAA Texas on Twitter: @AAATexas and Facebook: www.facebook.com/AAATexas.Find additional news from AAA Texas in our online newsroom at http://tx-aaa.iprsoftware.com/.
NATIONAL & TEXAS GAS PRICES