The average price for a gallon have gas keeps falling in Texarkana.
According to new data from AAA Texas, the average price for a gallon of regular unleaded gasoline has dropped to $1.45, a seven-cent price reduction from a week ago at the same time.
Compared to the rest of Texas, Texarkana’s $1.45 is the eighth-cheapest in the state. The least expensive gas is in the Sherman-Dennison area where gas is at $1.17 a gallon, despite seeing zero price reduction over the last week. The most expensive gas is out in Midland at $1.76 a gallon.
A year ago at the same time, prices in Texarkana were $2.53, a full $1.08 price difference. Texarkana’s $1.45 this week is five cents lower than the statewide average and 37 cents lower than the national average.
AAA Texas says the statewide figure of $1.50 in Texas is the lowest since January of 2009. The downward pressure on pump prices is expected to continue because of decreased demand and high gasoline stock supplies. Texas could see minimal fluctuation at the pump due to the easing of stay-in-home orders and getting the green light to reopen in some areas. However, it won’t impact national prices.
The Organization of the Petroleum Exporting Countries (OPEC+) agreed to cut production earlier in April. Producers agreed to reduce output by approximately 9.7 million barrels per day in May and June.
“COVID-19 has destroyed demand for gasoline for well over a month,” said AAA Texas spokesperson Daniel Armbruster. “This has allowed oil prices to plummet to historical lows at times in April, and gas prices have slid to prices not seen in more than 11 years in the Lone Star State.”
The Energy Information Administration says that refinery utilization increased slightly to just under 75% in the Gulf Coast region last week. April sees a 90% utilization among regional refineries. The national refinery utilization is at 70%.
The United States’ gas demand rose to 5.9 million barrels per day last week, up from 5.3 million a week ago. However, they are nearly half of the demand from April 2019’s 9.45 million barrels per day average.