Despite the sour economic news roiling the stock and oil markets, the national average for a gallon of regular gasoline had a calm week, remaining at $3.46 as of March 16.
Meanwhile, the global oil price plunged into the low to mid $60 per barrel, a level not seen since August 2021.
“Given that the cost of oil accounts for 55% of what we pay for gas, it’s fair to wonder how soon prices will drop at the pump,” said Andrew Gross, AAA spokesperson. “But gas stations paid for that fuel in their underground tanks weeks ago, when oil was nearly $15 more a barrel. So it will take time for any savings due to cheaper oil to be seen at the pump. And that is assuming the oil price does not rise again.”
According to new data from the Energy Information Administration (EIA), gas demand increased slightly from 8.56 to 8.59 million b/d over the week preceding March 16. Meanwhile, total domestic gasoline stocks decreased by 2.1 million bbl to 236 million bbl. Increasing demand amid tighter supply would typically push pump prices higher; however, lower oil prices have countered this effect. If crude oil prices keep falling, drivers could see pump prices decline.
The March 16 national average of $3.46 is four cents more than a month ago but 84 cents less than a year ago.
Since March 9, these 10 states have seen the largest decreases in their averages: Colorado (-10 cents), Michigan (-7 cents), Ohio (-6 cents), Oklahoma (-6 cents), Wisconsin (-4 cents), California (-4 cents), Nevada (-4 cents), Idaho (-3 cents), Nebraska (-3 cents) and Oregon (-2 cents).
The nation’s top 10 least expensive markets: Mississippi ($3.00), Oklahoma ($3.02), Missouri ($3.04), Texas ($3.05), Arkansas ($3.06), Kansas ($3.07), Louisiana ($3.08), Alabama ($3.11), Tennessee ($3.13) and South Carolina ($3.15).
Source: AAA
Abby Andrews