Gas Prices Fall Despite High Oil Prices
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UPDATED: Mar 13, 2020
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When it comes to speculation about gasoline prices, we love it when predictions of higher prices prove to be inaccurate. Not that we want the pundits to look foolish. We’re just always happy to see a lower total when we fill up.
And since the cost of oil has been rising, most have expected gas prices to follow suit. And that they haven’t done so is rather atypical, since crude oil is the main component of the cost of a gallon of gas. It makes up 63 percent of the overall cost of gas.
But another component of the price – demand for gasoline from drivers – continues to fall. And lower demand translates into lower prices.
According to the Lundberg Survey, the average price of regular gasoline is $3.29 a gallon in the United States. Of the cities included in that survey, Albuquerque, N.M., has the lowest price of gas at $2.84 while San Francisco has the highest gasoline at $3.67.
Unfortunately, while the average cost of a gallon of gas has fallen nationwide, some states haven’t seen a benefit. Ohio, for example, has seen gas prices rise eight cents per gallon according to the American Automobile Association’s (AAA) Oil Price Information Service and Wright Express.
Residents of the Buckeye state are paying an average of $3.20 a gallon for gas. While that is lower than the amount they were paying this summer, gas is still a full 30 cents higher per gallon in Ohio than it was the same period last year.