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Austin-area gas prices drop six cents this week

November 08, 2018 - 9:23 am

AUSTIN (KJCE) -- Austin-area gas prices dropped six cents in the past week on average, according to the latest numbers from AAA Texas.

The average price for a gallon of regular unleaded in the Austin area this week is $2.45. That's 17 cents higher than this time a year ago.

The statewide average also sits at $2.45 this week, down seven cents from a week ago.

Drivers in Midland continue to pay the most on average at $2.97, while drivers in Sherman-Denison are paying the least at $2.26 per gallon.

Nationally, prices also dropped six cents to an average of $2.73.

AAA says these price drops are happening at a time that market analysts previously thought would likely see pump price increases due to the White House’s re-imposition of sanctions on Iran, some of which will target the country’s energy sector and impedes its ability to export oil. Analysts say those moves were expected to have a potential large impact on global supply and demand. When the decision was announced in May, crude oil prices quickly spiked as high as $77 a barrel.

"With the market anticipating and reacting to the pending Iran sanctions throughout the summer they have remained calm and drivers continue to see gas prices falling across Texas," said Daniel Armbruster with AAA Texas. "With Thanksgiving around the corner, motorists could pay the lowest prices for gas since April just as millions of Texans will drive 50 miles or more to their destination."

Nearly half of the country’s top 10 states with the largest weekly decreases are South and Southeast states. As gas prices drop, they are shrinking the year-over-year difference in price.

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