(AAA) – The statewide gas price average in Texas is $1.57 for a gallon of regular unleaded fuel, according to the AAA Texas Weekend Gas Watch. That price is six cents less than this day last week and is $1.01 less per gallon compared to this day last year.
Of the major metropolitan areas surveyed in Texas, drivers in Midland are paying the most on average at $1.82 while drivers in Sherman/Denison are paying the least at $1.19 per gallon.
The national average price for a gallon of regular unleaded is $1.83, which is six cents less compared to this day last week and $1.00 less than the price per gallon at this same time last year.
As stay-at-home and social distancing guidelines remain in place, the statewide average pump price has plummeted to the cheapest level since February 2016.
At a national level, gasoline demand is still just below 5.1 million barrels per day, which is nearly half of the demand a year ago, according to the latest U.S. Energy Information Administration data.
On Sunday, the Organization of the Petroleum Exporting Countries plus (OPEC+), led by Saudi Arabia, announced historic global crude productions cuts – nearly 10 million barrels per day in May and June. However, the price for domestic crude oil has mostly slumped since the announcement, which will likely continue to push gasoline prices cheaper.
“Gasoline prices have been on a steady decline around the Lone Star State since late February,” said AAA Texas spokesperson Daniel Armbruster. “And while the crude oil production cut is historic, it’s likely to not have an immediate impact on pump prices given the ongoing impact the COVID-19 pandemic continues to have on crude oil prices and gasoline demand.”
As of today, Texas has the 11th least expensive gas prices in the country, while Wisconsin has the lowest statewide average at $1.26 and on the U.S. mainland California carries the highest average at $2.84.
Refinery utilization dropped to 76% in the Gulf coast region last week. In the last 20 years, the lowest level the Texas statewide average dropped to was $1.02, which was set on December 26, 2001.