This Labor Day weekend, Texoma drivers heading out for the holiday are seeing the cheapest gas prices in years, AAA Texas announced Thursday.
Prices in the Sherman-Denison metro area fell to $1.85 per gallon of unleaded fuel, the travel agency indicated in its Sept. 3 Weekend Gas Watch. That’s down four cents from last week’s $1.89 average and is 31 cents lower than the $2.16 average at this time last year.
Statewide, the gas price average is $1.91 per gallon as of Thursday, a penny less than on the same day last week and 37 cents less per gallon compared to the same day last year.
Of the major metropolitan areas surveyed in Texas, drivers in Odessa are paying the most on average at $2.13 while drivers in San Antonio are paying the least at $1.81 per gallon.
Pump prices have been relatively steady despite disruption to the oil and gas industry in the Gulf of Mexico after Hurricane Laura made landfall last week. Balancing forces in the market, such as decreasing gasoline demand across the country and a slight reduction in regional gasoline supply, could be behind the slow pump price movement, according to an AAA analysis.
As for the outlook on fuel prices, the impact to oil and gas facilities in the Gulf region from Hurricane Laura could be felt for some time. Industry analysts caution that if platforms and rigs are offline for an extended amount of time, supply could tighten and gas prices could be impacted.
“Texas pump prices are setting up to be the cheapest for a gallon of regular unleaded on Labor Day since 2004,” AAA Texas spokesperson Daniel Armbruster said in a press release. "This shows just how much of an impact the COVID-19 pandemic has had on fuel prices, even after a major hurricane interrupted refinery operations in the Gulf of Mexico.”
Texas gas prices come in at second-lowest in the nation this week, just behind Mississippi.
Prices were up to date at press time using market prices posted at 3:41 a.m. Thursday.