Texas gas prices are lower, but will trend continue into summer as recession threat looms?
Texans paid record-breaking prices at the pump last year, with the average gas price reaching $4.49 in Fort Worth.
A year later, the national average for a gallon of gas has decreased.
The lower cost of oil cancels out the high demand for gasoline, according to the American Automobile Association.
“Increasing demand for gasoline would usually drive pump prices higher, but the cost for oil has remained low lately, so drivers should benefit from stable pump prices as Memorial Day drawers near,” AAA spokesperson Andrew Gross said in a news release.
What keeps gas prices down?
The price of crude oil influences whether drivers will pay more or less at the pump.
In 2022, the price of crude oil was in the low 80s per barrel. The AAA previously reported that when crude oil crosses the $80 barrel mark, more upward pressure is placed on what drivers pay at the pump.
The average crude oil price is in the low to mid 70s per barrel, the lowest West Texas Intermediate, or WTI, Crude at $71 per barrel.
Oil prices declined Wednesday amid market uncertainty due to stalled U.S. debt ceiling negotiations, the AAA reports. There are market concerns that a breached debt limit could tip the economy into a recession.
Are gas prices lower than last year?
The average price of gas in Texas is $3.09, below the national average of $3.53.
The current average for a gallon of regular grade gas is $3.14 in Fort Worth. It dipped below the national average a month ago.
Last year, the average price was $4.14 statewide and $4.19 in Fort Worth.
Would a recession cause lower gas prices?
Crude oil demand and prices would likely decline in a recession, according to the AAA.
While gas prices could go down in a recession, external factors like the Russian invasion of Ukraine may keep prices high, according to the Nasdaq Stock Market.
