Lower demand for crude oil and gasoline has translated to lower prices for Texarkana area drivers.
According to data from AAA Texas released on Thursday, the average price for a gallon of regular unleaded gasoline was $1.82, which are in the middle of the pack in terms of cost — 11th-cheapest in the state or ninth-cheapest depending on one’s perspective.
Texarkana’s $1.82 is two cents higher than the statewide average, which has not been $1.80 since 2016. The Texarkana average is 25 cents lower than the national average.
The most expensive gas in Texas can be found in Midland at $2.00 per gallon. The cheapest gas in the state is in Sherman-Denison where prices are $1.50 on average.
Crude oil prices are dropping to rates not seen since the early 2000s, and gasoline prices are following suit. 60% of the price reduction can be attributed to the drop in crude oil prices. However, at this time of year, gas prices tend to get higher as the increase in warm weather leads to people driving more. However, with the practice of social distancing related to the coronavirus, whether by individual choice or government intervention, there isn’t as great of a demand from motorists.
“Demand for both crude oil and retail gasoline continues to decrease as fewer drivers are out on the road, causing gas prices to drop to levels not seen in four years,” said AAA Texas spokesperson Daniel Armbruster. “The primary factors are concerns about coronavirus keeping people home plus Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers still have disagreements about future production figures.”
Gas pumps are not in short supply of gasoline, and drivers do not need to rush to the pumps to fill up. Gasoline distribution has not been disrupted.