Original publish date: Sep. 8, 2022
Credits: Gray Television News 12 KXII, Chanel Young
DENISON, Texas (KXII) - Summer is gradually slipping away, and so are high gas prices.
According to the American Automobile Association (AAA), after a slight increase around Labor Day weekend, prices at the pump have recently declined nearing the fall season. They said the national average for a gallon fell seven cents in the past week to $3.77.
“We’ve seen a decline of a dollar and twenty cents a gallon since the peak this summer, so I think that definitely impacts people who use a lot of gasoline and those who are out on those open roads. It definitely helps them out at this point,” said Leslie Gamble, AAA Manager, Public and Government Affairs.
AAA added the decline in gas prices are due to lower oil prices, lower demand for gas, and a quiet hurricane season.
“Analysts are saying it’s because of the decline and demand expected this fall that typically occurs as people get into constraints that don’t make travel quite as frequent,” Gamble said. “The lack of a tropical storm of hurricane which requires the offshore drilling and offshore production of oil to seize has not occurred this year.”
Meanwhile, investors are concerned about an additional factor, which is the future of gasoline imports by China. China is the number one importer of oil for nations around the world.
“There are concerns right now about China,” Gamble stated. “Looking at a decline in their manufacturing, their demand, potentially some COVID spikes, is making investors cautious. Therefore, oil prices are lower than they have been.”
As of Wednesday, gas prices are lower than last week, but higher than it was a year ago. However, Texas continues to pay the lowest in gas compared to any state in the nation at $3.23 per gallon.
AAA said the length of the price decline can be unpredictable, but the next major spike in gas prices could occur in November.
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