AAA Texas reports: Lone Star State gas price average drops a penny

The statewide gas price average in Texas is $2.83 for a gallon of regular unleaded fuel, according to the AAA Texas Weekend Gas Watch. That price is one cent less than on this day last week and is 93 cents more per gallon compared to this day last year.

Of the major metropolitan areas surveyed in Texas, drivers in Odessa are paying the most on average at $3.04 while drivers in the Sherman-Denison area are paying the least at $2.75 per gallon. The national average price for a gallon of regular unleaded is $3.16, which is one cent more when compared to this day last week and 97 cents more than the price per gallon at this same time last year.

Demand for retail gasoline remains strong across the United States as more people are traveling this summer compared to 2020. Oil Price Information Service data shows that U.S. gasoline sales climbed 3.6% week-over-week. According to the Energy Information Administration, regional fuel supply levels increased slightly as did Gulf Coast refinery utilization from the week prior.

These factors have likely helped keep Texas gas prices from increasing compared to last week. Crude oil prices are much more expensive now than they were last year, which is why retail gasoline prices are nearly one dollar more per gallon, on average.

The cost of crude makes up roughly half the cost of what we pay at the pump. Crude oil prices have rebound from the steep losses seen early in the week.

“Crude oil prices, which are the biggest factor when it comes to what we pay at the pump, have been on a roller coaster this week,” said AAA Texas spokesperson Daniel Armbruster. “Crude prices saw sharp declines early in the week but rebounded quickly. It’s unlikely drivers will see much, if any relief at the pump through the remainder of July.”

Drivers in Texas are paying some of the cheapest gas prices in the U.S., ranking 3rd lowest in the country, according to gasprices.aaa.com.