Fall Means Falling Gas Prices

Leaves aren't the only thing that drops this time of year...gas prices typically also decline during the fall season, and this year is no different. The current national average for regular unleaded according to AAA Texas is $2.60 per gallon, 24 cents less than one year ago. In Texas, things are even better, with the average now at $2.25 per gallon, down ten cents from a month ago and 28 cents from a year ago.

The biggest factors driving the lower prices are reduced demand for gasoline thanks to cooler temperatures and fewer road trips, plus continued low crude oil prices driven by strong production, especially from Texas. "We have a decline in demand this time of year always, and the refining maintenance season is underway," says Trilby Lundberg with the Lundberg Survey.

Lundberg notes that refinery maintenance, which typically happens in the fall and can cause some brief rises in price, is winding down as we head into November, while demand should remain low. "Those two elements combined should enhance the overall supply needed, and bring the price down a few more pennies sometime soon," she says.

Another factor that should help continue the trend is crude oil prices. "West Texas intermediate (crude) has been most of the time within $50-60 per barrel," says Lundberg. "If it does not shoot up, we may see a decline of a few pennies now, and later, depending on how demand and the economy is doing, maybe further declines."


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