After days of falling crude prices, pump prices dropped a noticeable amount during the past week. It marks the first big drop since February.
According to GasBuddy, the average price for a gallon of regular, unleaded gas in Houston fell to $2.11 (a decline of 2 cents). Across the nation, a 5 cent average decline was recorded and brought the average nationwide cost to $2.33. Gas prices have increased nearly every week since February when prices in Houston shortly bottomed out at an average less than $1.50 per gallon.
Oil prices have grown since February and flew to $50 per barrel in early June. However, oil prices have feebly dropped over the past ten days and stayed under $49 a barrel as of Monday.
Will Speer, senior petroleum analyst at GasBuddy, said the drop in prices impressed him despite the record levels of U.S. gasoline intake during the busy summer season when the amount of driving done in America increases significantly. “As crude oil prices have cooled off, the impact is finally being felt in the retail gasoline sector,” Speer said.
After some momentary refinery outage issues were resolved, the biggest drops in gasoline prices occurred in the Midwest.
Currently, these are the lowest pump prices have been in 11 years. GasBuddy reports that the average gas prices for the rest of the season are estimated to dip to their lowest level since 2005. The 2016 hurricane season might create some disruptions, so large amounts of gasoline production across refineries should guarantee that there’s enough product handy in case of an emergency.
Locally, Monday pump prices ranged as low as $1.84 per gallon in Rosenberg and up to $2.89 inside the I-10 loop.
Article written by HEI contributor Briana Steptoe.