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Gas prices continue to tumble after Fourth of July

The average price of a gallon of gasoline dropped in Texas by three cents this week, AAA Texas reported.
The average price of a gallon of gasoline dropped in Texas by three cents this week, AAA Texas reported. AP archive

As vacation time gets into full swing, Texas motorists are continuing to see lower gas prices after the busy Fourth of July weekend.

Statewide, the price for a gallon of unleaded gasoline dropped three cents to $2.09 after remaining flat for the previous two weeks, according to AAA Texas Fuel Gauge.

Fort Worth and Arlington remained higher, even though prices dropped 5 cents to $2.12, the agency reported. In Dallas, a gallon of gas is $2.14.

The price drop comes one week after motorists enjoyed the lowest gas prices for the July Fourth weekend since 2005. AAA estimated that a record 43 million people took to the road that weekend. The price of gas is 48 cents lower than a year ago.

Nationally the price of gas is $2.26 a gallon.

I think it will tick down. The longer you can hold off, don’t top it off.

Will Speer, senior petroleum analyst at GasBuddy

Lower crude oil prices along with top production at the nation’s refineries are the reason prices ticked down this week, said Will Speer, a senior petroleum analyst at GasBuddy. Crude oil prices make up 50 percent of the price for gas. He predicts prices will continue to tumble.

“I think it will tick down,” Speer said. “The longer you can hold off, don’t top it off.”

The markets agreed with Speer. On Thursday, benchmark U.S. crude fell 4.8 percent to $45.41 on the New York Mercantile Exchange after the Energy Information Administration reported that stockpiles of oil and gasoline remained high.

Gas prices typically climb in summer because of higher demand and the more costly low-emission fuel produced by the nation’s refineries, which also undergo maintenance.

“We’re on the other end of July Fourth and demand peaks out and refineries start to crank out a lot of product. With crude prices staying low for a sustained period of time, now we’re starting to see them [gas prices] tick down,” Speer said.

This report includes material from The Associated Press.

Max B. Baker: 817-390-7714, @MaxbakerBB

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