COPPELL, Texas - The statewide gas price average in Texas is $2.65 for a gallon of regular unleaded fuel, according to the AAA Texas Weekend Gas Watch. That price is the same as last week and is 63 cents more per gallon compared to this day last year. Of the major metropolitan areas surveyed in Texas, drivers in Midland are paying the most on average at $3.09 while drivers in San Antonio and Wichita Falls are paying the least at $2.53 per gallon. The national average price for a gallon of regular unleaded is $2.87, which is two cents more than this day last week and 64 cents more than the price per gallon at this same time last year.
Gas prices through the Independence holiday have remained steady or declined slightly in most Texas cities, suggesting that demand is keeping pace with supply. However, two cities did see significant spikes week-to-week. Brownsville and McAllen saw average prices jump 11 and 10 cents over last week, respectively. According to a AAA spokesperson, every market has a different reaction to the different factors impacting pump prices. The rise in the valley could be related to high demand.
AAA Texas is tracking the following factors that will continue to impact pump prices through the fall:
• Domestic crude inventories: For the first summer driving season in five years, the U.S. has seen the largest one-week reduction in crude inventories. A consistent decline in supplies could spark higher gas prices.
• Crude production and exports: Refinery runs are at an all-time high and exports are at record levels, which impacts supply levels.
• Gasoline demand: The latest Energy Information Administration (EIA) data shows U.S. demand at 9.7 million b/d, one of the highest levels of the year, and could hit a new record with Independence Day holiday travel.
• Crude oil prices: Last week, crude oil hit $74/bbl – its highest level since 2014.
• Geopolitical concerns: Market observers are watching crude production levels in Libya and Venezuela amid economic woes in Venezuela, and details on the Iran sanctions all of which are influencing market prices.
For a more in depth look at how your city compares to other's in Texas, click on the PDF, courtesy of AAA Texas.