Gas Watch: Dropping demand sends gas prices lower

August 08, 2019 - 10:19 am
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AUSTIN (Talk1370.com) -- A drop in demand and building gasoline supplies are leading to lower prices at the pump, according to AAA Texas' Weekend Gas Watch.

The average price for a gallon of regular unleaded fuel this week in the Austin area is $2.43, down three cents from last week and 19 cents cheaper than this time last year. Across the state, Texas drivers are paying the same $2.43 on average - representing a four cent decrease from last week and 20 cents cheaper than a year ago.

Drivers in Midland and Odessa are paying the most on average at $2.60 per gallon, while drivers in McAllen are paying the least at $2.26 per gallon.

Nationwide, the average is $2.68 this week, down four cents from last week and 19 cents cheaper than a year ago.

Market analysts attribute the recent price decreases to an increase in regional refinery utilization, growing gasoline supply, and a dip in demand. "As many families prepare for the beginning of another school year, demand for retail gasoline is starting to decline,” said Daniel Armbruster with AAA Texas. "If demand continues to fall, it's likely Texans will continue to see cheaper gas prices through August as summer driving season winds down."

Historically, Texas gas prices increase in late spring and begin to decline during the month of August as summer driving season starts to wind down.

Motorists in the South and Southeast saw some of the largest declines at the pump and all states in the region have cheaper gas prices on the week. In fact, four states land on the top 10 list of largest weekly changes: Florida, Georgia, Texas and South Carolina.

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