In Texas the average price for a gallon of regular unleaded gasoline dropped five cents according to the AAA Texas Weekend Gas Watch. The national average also dropped five cents. This is the fourth week in a row gasoline prices have dropped and the average cost of gasoline in Texas is 31 cents less than it was a month ago.
The statewide average is $3.58 and the national average is $3.73. The Texas statewide average is 15 cents below the national average.
The least expensive gasoline is in Beaumont, where prices fell four cents and the average price per gallon is now $3.50. The most expensive gasoline is in Amarillo at $3.65, where the average price for a gallon of regular unleaded has not changed since last week.
What’s driving the market?
• This week crude prices moved lower as concerns of an economic slowdown pressured prices downward to their settlement price of about $99 per barrel. This is $3.69 lower than oil prices last week and $14.92 lower than the multi-year high price of $113 set on April 29, 2011.
• U.S. retail gasoline demand continues to decline compared to a year ago. The MasterCard SpendingPulse report showed weekly gasoline demand is down 2.5 percent.
• Both a slowing economy and a reduction in gasoline demand placed downward pressure on crude oil prices. As crude oil prices have fallen, the national average gas price has similarly declined.
“With a drop in prices of 31 cents a gallon compared to prices just a month ago, motorists in Texas are saving close to $3.50 per tank. Prices are gradually falling and for consumers planning to travel during the upcoming summer vacation season, this can only be encouraging,” said AAA Texas/New Mexico Public Affairs Senior Associate Sarah Schimmer in Houston.