A gallon of gas in Fort Worth now costs you $1.51 less than in June. What happened?
After a costly spring and summer, gas prices in Texas are now at their lowest in six months, just in time for the busy Labor Day holiday weekend.
In June, the average price for a gallon of unleaded gasoline in Fort Worth-Arlington spiked to $4.83 — the highest it had been all summer. This week’s average of $3.32 a gallon shaves nearly a third off that price, according to the American Automobile Association.
Over the last 11 weeks, gas prices have fallen as the price of crude oil dropped, which leads to lower fees at the pump. This week’s national average of $3.82 a gallon is the first time since March that prices have gone under $4, according to AAA.
Labor Day weekend is the last chance for families to go on a summer roadtrip with the school year already in full swing. Nearly a third of Americans will travel during the upcoming three-day holiday weekend, according to a AAA travel survey.
“The cost for fuel is at its lowest point in six months as millions of drivers prepare to hit the road for the last weekend of summer driving season,” AAA Texas spokesperson Daniel Armbruster said in a press release. “However, crude oil prices remain sensitive to any supply or demand news with the ongoing war in Ukraine. Crude makes up approximately 60 percent of the cost of a gallon of retail gasoline.”
The average price for a gallon of unleaded gasoline in Texas is $3.34, a 7 cent decrease from a week ago, but still 54 cents higher than the previous year. The Lone Star State average, however, is still significantly lower than the national average of $3.82 a gallon, according to AAA.
McAllen has the lowest average gas price per gallon at $3.20, while El Paso has the highest average at $3.61 a gallon. Texas ranks second in the nation for lowest average gas prices at $3.34 a gallon, trailing Arkansas’ $3.32.
Many factors will determine if this trend of falling gasoline prices can continue. Fallout from the war in Ukraine and worries of hurricane activity in the Atlantic Ocean and Gulf of Mexico will certainly play a role. But as demand rises for the cheaper gasoline, so will the prices of crude oil which makes up more than half of the cost at the pump.
“The streak of daily declines in the retail price of gasoline is about to end as crude oil and refined product futures have rallied off their recent lows,” Andy Lipow, president of Lipow Oil Associates, tells CNBC.com.
This story was originally published September 1, 2022 at 1:11 PM.
