When are we going to see gas under $3 a gallon in Texas again? It’s possible, says the AAA
Gas prices have been falling in Texas for weeks now. But how low can it truly go?
“For at least the next week or so that is likely going to be the scenario,” AAA spokesperson Daniel Armbruster said of the dropping prices of gasoline. “Beyond that, it’s really hard to say. Anything’s possible.”
The average price of a gallon of gasoline in Fort Worth-Arlington is $3.93. The average price per gallon in Texas is right at $4. Only a month ago commuters in Fort Worth were paying an average of $4.79 a gallon. But even with the decreases over the last few weeks, prices are nowhere near the average from a year ago which was at $2.82 a gallon.
Texas commuters dream of seeing prices trend below $3 a gallon again. Anything is possible, Armbuster said, but likely not anytime soon.
It would be tough to see how prices could drop that significantly before years end, he said, unless there was a dramatic drop in demand. In 2022, Texans will most likely see higher gas prices compared to previous years.
“If they do drop below $3 a gallon before the end of the year, that would be something I think a lot of drivers would certainly appreciate,” he said.
Why are gas prices dropping?
Gas price decreases can be attributed to a mix of factors, but mainly because of crude oil prices trending lower.
Crude oil prices are dropping as the fear of an impending recession continues across the globe, AAA spokesperson Daniel Armbruster said. Lower prices for crude oil means lower gas prices.
There has also been a drop in demand at the pump, despite it being the height of traditional summer driving season, Armbruster said. AAA believes the drop in demand is more affiliated with daily commute, rather than traveling for vacation, which is at a steady pace.
Another factor is the stockpile of gasoline has increased. Combine that with the drop in demand and crude oil prices going down, and that’s what is at play right now, Armbruster said.
What prices look like in Texas, nation
The cheapest gas can be found in Laredo at $3.63 a gallon, followed by McAllen and Brownsville, both selling at $3.70 a gallon. The highest prices can be found in College Station at $4.13 a gallon, followed by El Paso at $4.10 and Wichita Falls at $4.08.
The cheapest gas per gallon average in the country is in South Carolina at $3.99 a gallon. Texas has the second cheapest per gallon average at $4.
California remains the state with the highest price per gallon at $5.87, followed by Hawaii at $5.59 and Alaska at $5.31.
The past few months have been turbulent for consumers at the pump, from record high prices in May and June to gradual decreases throughout the summer. Even nearly two weeks ago, prices were flirting at almost $4.30 a gallon.
Will gas prices continue to lower over the rest of summer?
In the meantime — yes — gas prices will lower, but that doesn’t mean they will continue to dip later in the year.
A wildcard in the gas price calculus is what happens with the war between Russia and Ukraine. The conflict certainly helped spike prices earlier in the year, Armbruster said.
Hurricane season — which is in full swing — can disrupt the flow of supply by shutting down rigs. All it would take is a threat of a hurricane.
Predicting the weather and a war is tough, and so is forecasting the price of gasoline, Armbruster said. For the moment, AAA doesn’t see anything significant that could make prices soar.
“But again, we are living in a time where things can change quickly,” he said.
What tips are out there to save at the pump?
While gas prices have dropped over the last few weeks, knowing ways to save at the pump can help your bottom line.
A few tips:
- Driver behavior — AAA studies have shown that driver behavior is the number one factor when it comes to fuel consumption. Adjusting behavior behind the wheel can help you save.
- Don’t accelerate too quickly — A “jackrabbit” start is when you accelerate quickly, eating up anywhere from 10 to 40% of fuel efficiency.
- Vehicle maintenance — Keeping your vehicle well maintained and serviced can help at the pump. Making sure the tires are aired up to the correct psi can be beneficial when on the road.
- Fuel rewards — Many grocery story or large retail chains offer fuel rewards at their gas pumps. It may only be a few cents off, but every little bit helps.
- AAA mobile app — Drivers can utilize the app to search for the cheapest gas prices around.
This story was originally published July 19, 2022 at 2:37 PM.
