The statewide gas price average in Texas is $2.82 per gallon for regular unleaded fuel, according to the AAA Texas Weekend Gas Watch. That price is five cents less when compared to this day last week and is 41 cents less per gallon compared to this day last year. Of the major metropolitan areas surveyed in Texas, drivers in the El Paso area are paying the most on average at $2.98 per gallon while drivers in the Lubbock area are paying the least at $2.63 per gallon. The national average price for a gallon of regular unleaded is $3.22, which is four cents less when compared to this day last week and 40 cents less per gallon when compared to this day last year.
Prices at the pump are coming down even though this is the time of year when gas prices go up. Supply and demand are the main reason for the dip. After OPEC+ announced it’s increasing oil production next month by more than 400,000 barrels a day – much more than expected – the price of crude oil has been falling. Oversupply coupled with tepid gasoline demand is resulting in lower pump prices.
According to new data from the Energy Information Administration (EIA), gasoline demand across the country decreased from 8.49 b/d last week to 8.42. Total domestic gasoline supply decreased from 237.6 million barrels to 236.0. U.S. gasoline production decreased last week, averaging 8.9 million barrels per day.
“Crude oil prices have dipped below $60 per barrel for the first time since February 2021, putting downward pressure on retail gas prices,” said Daniel Armbruster, spokesperson for AAA Texas. “Because crude oil accounts for about half the cost of a gallon of gasoline, this decline is a key factor driving lower prices at the pump.”
