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10/26/2022

Pain at the Pump Eases as Fueling Trips & Oil Prices Dip

The national average has declined daily since Oct. 11.
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gas pump

WASHINGTON, D.C. — Daily drops in fuel prices prompted the national average to fall 9 cents on the week to $3.79 per gallon.

Prices have continually declined since Oct. 11, primarily due to lower oil prices and fewer drivers than usual filling up their tanks, according to AAA.

"Global recession fears coupled with the Biden Administration's plan to continue tapping the Strategic Petroleum Reserve into December has helped temper oil prices," said Andrew Gross, AAA spokesperson. "This will help take the pressure off pump prices, benefitting drivers and their wallets."

Recent data from the U.S. Energy Information Administration (EIA) shows that gas demand increased slightly from 8.28 million barrels per day to 8.68 million barrels per day last week, reported AAA. Meanwhile total domestic gasoline stocks fell slightly from 209.5 million barrels to 209.4 million barrels.

Although gasoline demand is up slightly, it remains nearly 1 million barrels lower than it was one year ago. Gas prices will likely continue to decline if demand remains low and oil prices don't spike.

The current national average of $3.79 is 9 cents higher than one month ago and 41 cents more than one year ago, according to AAA.

The nation's top 10 largest weekly decreases occurred in Alaska (33 cents per gallon), California (30 cents), Oregon (26 cents), Washington (24 cents), Nevada (20 cents), Indiana (15 cents), Michigan (15 cents), Wisconsin (14 cents), Ohio (13 cents) and Illinois (11 cents).

The nation's top 10 least expensive markets are Georgia ($3.20 per gallon), Texas ($3.20), Mississippi ($3.27), Arkansas ($3.30), South Carolina ($3.31), Tennessee ($3.31), Louisiana ($3.34), Florida ($3.35), Alabama ($3.37) and Missouri ($3.40).

At the close of the formal trading session on Oct. 21, West Texas Intermediate rose by 54 cents to reach $85.05. Crude oil prices increased after the EIA reported that total domestic commercial crude inventories fell by 1.7 million barrels to 437.4 million barrels, but this followed the price of oil declining earlier in the week due to ongoing market concerns about crude demand in the face of recession fears.