Gas prices in the Texoma region fell a nickel this week, AAA Texas announced Thursday.
The average cost for a gallon of unleaded fuel in the Sherman-Denison metro area dropped from $2.27 last week to $2.22 as of Thursday, Jan. 9, the travel agency listed in its Weekend Gas Watch. However, this week’s price is still 38 cents higher than the average at this time last year, according to the price report.
The statewide gas price average in Texas is $2.30 per gallon, a penny more than the same day last week and 38 cents more per gallon compared to the same 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.
Tensions between the United States and Iran have caused oil prices to fluctuate in recent days, according to an AAA analysis. Crude prices were trending lower Thursday 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 markets remained calm Thursday. The price of crude oil contributes to about 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,” AAA Texas spokesperson Daniel Armbruster said in a press release. “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%. Stocks are expected to build in the coming weeks, according to AAA analysts, and may cause gas prices to decrease unless crude oil prices increase.
Prices were up to date at press time Thursday using market prices posted at 3:41 a.m.