The price of gas shows no signs of going up any time soon. As of Monday, the cost of a gallon of unleaded, regular gas had fallen to an average of $2.00 in Houston.
The last time Houston saw a $2.00 gallon was back in May 2016 before the gas-demanding summer driving season and the mounting cost of crude raised pump prices. But now, oil prices are dropping as well as the demand for gas since reaching peak numbers around the Fourth of July weekend.
Senior petroleum analyst at GasBuddy, Patrick DeHaan said that though the U.S. could still shatter the record for gas consumption for the year of 2016, the demand has dipped beneath original expectations. Besides this, the country’s huge excess of cheap oil has become a massive supply of stored gas.
“Not only are gas prices nationally at their lowest level of the summer, but they have continued to decline as the glut of oil and refined products has persisted,” said DeHaan, “Almost every state saw a decline in gasoline prices versus last week, thanks to crude oil prices approaching their lowest level of the summer.” As for the rest of the year, the price of gas is projected to continue sinking below $2.00 per gallon. DeHaan also mentioned the waning profits of refining companies as the amount of supply keeps growing.
Prices as cheap as $1.67 per gallon were recorded in Humble and as high as $2.89 in the Galleria area. Over the last week, gas prices dropped roughly 3 cents throughout the Houston area and 6 cents across the nation to $2.15 per gallon on average. Only two states didn’t fill the growing effect of gas prices this past week: Idaho with an increase of 4 cents and Alaska with an increase of 2 cents.
Leading the list of the “biggest losers” are Indiana with a decline of 15.6 cents, Michigan with 12.6 cents, and Ohio with 12.4 cents.
Article written by HEI contributor Briana Steptoe.
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