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Gas prices are falling, but how long will it last?

Posted at 5:33 PM, Jul 07, 2022
and last updated 2022-07-07 18:33:11-04

CORPUS CHRISTI, Texas — Does it feel good to see the price of fuel come down from where it was — around the $4.50 a gallon range?

It’s continued to drop 3 weeks straight, but how long will that last?

“More stations are falling back under $4, and I would expect most stations to be back under $4 in a matter of weeks," said GasBuddy's head of petroleum analysis Patrick De Haan. "This comes as the price of oil yesterday (Tuesday) plummeted close to 10 percent, or $10 a barrel.”

De Haan is expecting the price drop to continue for at least another week, maybe two-to-three weeks. However, there are a number of factors that make the situation volatile such as changes to supply, or tropical-storm formation.

De Haan attributes the price decrease to an increased supply in oil, and the threat of an economic recession that would decrease the demand for gas.

“The strong U.S. Dollar is likely a contributing factor as well," he said. "Oil prices are globally traded in U.S. Dollars. Every other country essentially using non-U.S. Dollars are paying more, and that’s likely to stifle demand as well.”

AAA Texas' Joshua Zuber said the trouble is, prices could go back up. July is one of the months where the need for gas is highest because of summer travel.

“Typically, people don’t cancel their plans — they tend to modify those plans," he said. "So, they’ll maybe stay at less expensive hotels, maybe eat out fewer times or go to less expensive restaurants. Same thing with activities."

Not to worry though, these experts say there are more and more offers to save money at the pump.

They say one of those ways to save is if people simply aren't driving as much. If less people are traveling, the demand goes down, thus allowing the price to remain relatively low.

“Make sure you’re shopping around for the best gas prices, within a reasonable area, using an app like the AAA mobile app," Zuber said. "And then also sign up for fuel rewards program. Many retailers offer it now.”

AAA has a partnership with Shell, who offers a discount when you sign up on its app.

The GasBuddy app offers a discount when you sign up for their gas card. Most fuel companies have an app available in the Apple App Store or Google Play Store that offer a discount.

De Haan said the price decrease will soon translate to a drop in diesel prices, followed by jet fuel prices.

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