Austin-area gas prices jump slightly this week, AAA says

Cutoff of Iran oil waivers will lead to higher crude oil prices

April 25, 2019 - 9:46 am
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AUSTIN (Talk1370.com) -- Prices at Austin-area gas pumps are up slightly this week, according to the latest numbers from AAA Texas.

The average price for a gallon of regular unleaded fuel across the Austin-San Marcos metro area is $2.51 this week, up two cents from last week and three cents cheaper than this time a year ago.

Across the state, Texas' average rose four cents to $2.62; the nationwide average also jumped four cents to $2.88 a gallon.

Drivers in Midland continue to face some of the state's highest gas prices on average, paying $2.79 a gallon; while drivers in San Antonio are paying $2.47 a gallon.

This week, the U.S. government announced a plan to end the use of waivers for countries to import oil from Iran. In November of last year, the U.S. re-imposed sanctions on exports of Iranian oil, however, waivers were granted to allow some countries to continue making limited oil purchases from Iran for six months. U.S. Secretary of State Mike Pompeo announced that the administration will not renew sanctions waivers in an attempt to end all oil exports from that country. Decreases in Iranian oil exports will tighten the supply in the global market, which has already seen decreases as a result of the ongoing U.S. sanctions against Iran and Venezuela, along with OPEC’s reduced production.

"As the U.S. further blocks Iranian oil exports, global supplies are expected to continue tightening and retail gas prices will likely keep going up," said Daniel Armbruster with AAA Texas. "The retail price increase will be dependent on how expensive crude oil becomes and for how long."

Regional refinery utilization remains relatively steady, around 90 percent, and the south and southeast regions of the U.S. are the only ones to measure at a year-over-year surplus. All of this means that states in these areas, including Texas, could see only moderate changes in retail prices through the end of the month.

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