AAA Texas: Gas Prices Up Slightly Amid Tensions with Iran

Local News

(AAA) – The statewide gas price average in Texas is $2.30 for a gallon of regular unleaded fuel, according to the AAA Texas Weekend Gas Watch. That price is one cent more than this day last week and is 38 cents more per gallon compared to this day last year.

Of the major metropolitan areas surveyed in Texas, drivers in EL Paso are paying the most on average at $2.51 while drivers in Victoria are paying the least at $2.20 per gallon. The national average price for a gallon of regular unleaded is $2.60, which is one cents more compared to this day last week and 38 cents more than the price per gallon at this same time last year.

Tensions between the United States and Iran have caused oil prices to fluctuate in recent days. Currently, crude prices are trending lower after a brief spike on Wednesday, following the attack by Iran on an air base in Iraq which houses U.S. military troops.

With minimal damage and no human casualties reported from the Iranian strike, global supply for crude oil has not been impacted, and at this point markets remain calm. The price of crude oil contributes to approximately 60% of retail gas prices paid by U.S. consumers.

“While tensions between the U.S. and Iran have the potential to cause an increase in crude oil prices and eventually retail gas prices, so far that has not happened,” said AAA Texas spokesperson Daniel Armbruster. “Regional gasoline stocks are healthy and as of Thursday, crude oil prices remain stable. If this trend continues, drivers will likely only see minimal impact due to the conflict.”

Regional refinery utilization is reported by the Energy Information Administration to be a strong 97 percent. Stocks are expected to build in the coming weeks, which should cause gas prices to decrease unless crude oil prices increase.

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