Gas prices drop as demand falls, crude oil prices tumble

The statewide gas price average in Texas is $2.97 for a gallon of regular unleaded fuel, according to the AAA Texas Weekend Gas Watch. That price is two cents less than on this day last week and is $1.13 more per gallon compared to this day last year. 

Of the major metropolitan areas surveyed in Texas, drivers in El Paso are paying the most on average at $3.18 per gallon while drivers in Amarillo are paying the least at $2.81 per gallon. Drivers in Walker County are paying an average of $3.01 per gallon. 

The national average price for a gallon of regular unleaded is $3.38, which is two cents less when compared to this day last week and $1.22 more than the price per gallon at this same time last year.

According to the latest data from the Energy Information Administration, demand for gasoline fell week-to-week across the U.S. by nearly six percent. However, gasoline demand remains elevated from this time last year. Weekly regional fuel supply numbers increased slightly, and Gulf Coast refinery utilization remained practically flat from the week prior. Crude oil prices tumbled following news that the Omicron COVID-19 variant is spreading across the globe. West Texas Intermediate crude oil is below $70 per barrel for the first time since early September.

“Gasoline prices across much of the state are reversing their upward trend thanks to decreasing demand and falling crude oil prices,” said AAA Texas spokesperson Daniel Armbruster. “But it’s too soon to tell if fears of a global economic slowdown caused by the Omicron variant will push oil prices lower for the long term. Drivers can save on fuel by avoiding quick accelerations, riding on healthy tires and keeping their vehicle maintained in accordance with their vehicle owner’s manual.”

Drivers in Texas are paying the 2nd lowest gas price average in the country, according to gasprices.aaa.com. Oklahoma has the lowest average in the nation at $2.96 and California has the highest of any state at $4.70.