Gas prices fell this week to a national average of $4.67, 12 cents lower than last week's average, according to new data from AAA.
The national average is 32 cents less than a month ago, but $1.53 more than last year, AAA reported. Just last month, gas prices reached an all-time high, surpassing $5 per gallon and hitting the highest point since AAA began tracking prices in 2000.
This recent decrease came despite a surge in demand for gas after the July 4th holiday, according to AAA. In fact, the company had forecasted that a record 42 million people would travel for the holiday weekend.
"Usually, more people buying gas would lead to higher pump prices," AAA spokesperson Andrew Gross said. "But the price for oil, the main ingredient in gasoline, has fallen and is hovering around $100 a barrel. Less expensive oil usually means less expensive gas."
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Potential recession could reduce oil prices
Over the 4th of July holiday, the demand for gas increased from 8.92 million barrels per day to 9.41 million barrels per day, according to AAA. And total domestic gas stocks decreased by 2.5 million barrels over the same time period.
"Typically, these supply/demand trends would put upward pressure on pump prices; however, falling oil prices have contributed to lower pump prices," AAA stated in its report.
The West Texas Intermediate (WTI), or the price of oil, rose by $2.06 last Friday to $104.79, according to AAA. But despite Friday’s increase, this price was still down nearly $4 per barrel from the week before.
"For this week, crude prices could continue to face strong headwinds if the market remains concerned that a potential recession will reduce demand for crude," AAA stated. "If demand declines, crude prices will likely follow suit."
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This is where gas prices have seen the most change
The national price of gas is decreasing, but some states are seeing more significant changes than others. Here are the top 10 states with the largest weekly decreases in the price of gas, and by how much they dropped, on average:
- Texas: 18 cents
- Ohio: 17 cents
- Illinois: 17 cents
- California: 16 cents
- Wisconsin: 15 cents
- Indiana: 15 cents
- Kentucky: 15 cents
- Alabama: 15 cents
- Virginia: 14 cents
- Florida: 14 cents
The average price of gas in the U.S. varies by location. Here are the top 10 states with the least expensive average gas prices:
- South Carolina: $4.18
- Georgia: $4.18
- Mississippi: $4.18
- Louisiana: $4.22
- Texas: $4.22
- Alabama: $4.25
- Arkansas: $4.26
- Tennessee: $4.28
- North Carolina: $4.31
- Kentucky: $4.37
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