Monday’s national average price for a gallon of gasoline is $3.44, down 3 cents since last Monday. One year ago, the price was $4.26. AAA reports the New York State average is $3.44, down 2 cents since last Monday. A year ago, the New York average was $4.37.
Global oil prices plunged into the low to mid $60 per barrel range last week, a level not seen since August 2021. Given that the cost of oil accounts for 55% of what we pay for gas, lower oil prices should bring pump prices down. However, gas stations paid for the fuel that is in their underground tanks weeks ago, when oil was nearly $15 more a barrel. So it will take time for significant savings to be reflected at the pump assuming that oil prices don’t rise again. On Monday morning, oil prices ranged from $65 to $70 per barrel, down from $77 to $83 last week.
According to the Energy Information Administration (EIA), gas demand increased slightly while total domestic gasoline stocks decreased. Typically, increased demand amid tighter supply would push pump prices higher; however, lower oil prices have countered this effect. If crude oil prices keep falling, drivers could see pump prices decline.
Diesel prices continue to fall. The national average price for a gallon of diesel is $4.29, down 5 cents from a week ago. Here in New York, the current average for diesel is $4.92, down 4 cents from last week.
