As Crude Oil Prices Tumble, So Do Gasoline Prices

HOUSTON, August 9, 2008 - Gasoline prices fell another 7 cents last week in Texas as the average price for a gallon of gasoline dropped below $3.74 a gallon. That’s down nearly a quarter from the record average high of nearly $3.99 a gallon on July 17th. Nationally prices fell to $3.85 a gallon, down 26 cents a gallon since the high of $4.11 a gallon, also on July 17th.

Corpus Christi has the least expensive gas in Texas at just below $3.68 a gallon, down almost 8 cents in one week. El Paso once again has the most expensive fuel at a fraction above $3.80 a gallon. This is a drop of 6 cents since last week, but that’s the smallest decrease in the state.

"As the price of crude oil continues to drop, drivers nationwide and in Texas are beginning to really see the benefits. Prices have fallen by about a quarter nationwide and by about the same amount in the state. This means that a motorist who purchased 15 gallons of gas at $3.99 a gallon can now expect to get 16 gallons for the same total cost. All of the great work done by motorists this summer to conserve fuel and consolidate trips appears to be paying off," says AAA Texas Corporate Communications Manager Dan Ronan.

Earlier this week, the federal Energy Information Administration reported a much larger than expected increase in crude oil supplies, and it’s another indication that higher fuel costs and the slow United States economy have curtailed the demand for gasoline. During the first week of August, crude oil inventories increased by 1.7 million barrels, well above expectations of a build up of 300,000 barrels.