DALLAS — Texas gas prices are the cheapest in the country right now, according to AAA.
AAA says that the average price per gallon of regular unleaded in the Lone Star State is $2.93 compared to $3.30 on average nationwide, the company said Thursday. That national average is six cents higher compared to last week and $1.12 higher than one year ago, AAA said.
This average price in Texas is at its highest price point in seven years, AAA said. Currently, crude oil is $80 a barrel. Normally during the fall, prices decrease.
Texans are paying the least at the pump, followed by residents in Mississippi ($2.95), Oklahoma ($2.95), Arkansas ($2.96), Missouri ($2.97), Kansas ($3), Tennessee ($3.03), Louisiana ($3.04), South Carolina ($3.06) and Alabama ($3.06).
Why is it so expensive?
The key driver for this recent rise in the price of gas is crude oil, which typically accounts for between 50% and 60% of the price at the pump, AAA said.
In August, the Biden Administration asked the Organization of Petroleum Exporting Countries (OPEC) to move faster to restore the global supply and pressured OPEC to more quickly undo the production cuts put in place at the start of the pandemic.
However, OPEC and its oil-producing allies recently decided to not increase production further, which has only exacerbated the upward momentum for crude oil prices, AAA said.
“With more people traveling and returning to the office, demand for fuel is on the rise," said AAA Texas spokesperson Daniel Armbruster. "Factor in surging crude oil prices due to OPEC+ forgoing further production increases and we’re seeing a trend that we’re not used to seeing in October."
Prices have been climbing, but there's still a healthy supply of gas, said AAA spokesperson Daniel Armbruster.
In 2020, gas prices were lower because there were fewer people driving and traveling, AAA says. The record high for gas was in July 2008 at $3.98 per gallon.
Prices below are up to date at press time using market prices posted at 3:41 a.m. Thursday, AAA said.
Texas cities with the most expensive average gas price:
- El Paso - $3.15
- Midland - $3.08
- Odessa - $3.07
- Texarkana - $2.99
- Abilene - $2.99
- San Angelo - $2.98
- Longview - $2.97
- Tyler - $2.97
- College Station-Bryan - $2.95
- Dallas - $2.94
- Fort Worth-Arlington - $2.94
Cities with the cheapest average gas prices:
- Lubbock - $2.85
- San Antonio - $2.86
- Waco - $2.86
- Houston - $2.87
- Killeen-Temple-Fort Hood - $2.88