AAA: Gas prices continue a steady decline

WASHINGTON, July 19, 2022—The national average for a gallon of gas fell 15 cents since last week to $4.52.

Florida’s current average is $4.25 per gallon, down 58 cents from last month, according to the American Automobile Association.

The steady decline is due to lower domestic demand for gasoline at the pump and a much lower global price for oil.

The cost of a barrel of oil is in the mid-$90s, down from around $110 two weeks ago.

“Global economic headwinds are pushing oil prices lower and less expensive oil leads to lower pump prices,” said Andrew Gross, AAA spokesperson. “And here at home, people are fueling up less, despite this being the height of the traditional summer driving season. These two key factors are behind the recent drop in pump prices.”

According to new data from the Energy Information Administration, gas demand dropped from 9.41 million barrels a day to 8.06 million last week, while total domestic gas stocks increased by 5.8 million barrels.

Decrease in demand and declining oil prices have helped push pump prices down. As these supply/demand dynamics hold, drivers will likely continue to see price relief at the pump, according to AAA.

Today’s national average of $4.52 is 46 cents less than a month ago and $1.36 more than a year ago.

Alabama is in the nation’s top 10 least expensive markets at $4.09 a gallon. Further west, Mississippi sits at $4.04. Florida sits at the number 15 spot.

California has the highest fuel prices in the nation at $5.87 per gallon for a regular tank of gas. A month ago it was $6.40 with diesel topping out at $7 per gallon.

The cheapest gas price in the area is just below $4 at the Petro Express at 510 N. Ferdon Blvd. with north Crestview’s CEFCO behind it at $4.05 per gallon.

Tom Thumb stores no longer maintain the same prices throughout the area. They range from $4.15 to $4.27, depending on the location, according to GasBuddy.

At the close of Friday’s formal trading session, crude prices increased slightly at the end of the week due to the market expecting crude supply to remain tight throughout summer.

Tightening of supply is being driven by the potential for slower economic growth due to rising interest rates and inflation.

Declining crude demand, due to reduced economic activity, could lead prices to follow suit.

Staff and AAA news release

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