Why North Texas gas prices are $1.30 lower this year & what could happen next
NORTH TEXAS (CBSNewsTexas.com) — Adam Ross needs his heavy-duty pick-up to tow his 30-foot speedboat to and from the lake.
So, he's relieved the cost of diesel has dropped by nearly two dollars a gallon since this weekend a year ago.
"This thing really sucks it dry," Ross said. "It's crazy."
It's a similar story for his boat, which takes unleaded regular.
"That one was about $520 to fill up," said Ross. "This year, it was around $340 to fill up. I mean, the difference is drastic this year compared to last year."
Steve Smillie says he and his family noticed the drop in gas prices too.
"That's the reason we decided to get a boat again," Smillie said.
The American Automobile Association, AAA, said the national average for a gallon of regular unleaded dropped from $4.81 during the July 4 holiday weekend last year to $3.53 this year.
In Texas, AAA said the state average fell from $4.41 to $3.14, and in the Dallas-Fort Worth area, the average declined from $4.45 to $3.18.
We spotted prices below the average at a variety of gas stations:
- It was $3.01 Monday morning at Buc-ee's along U.S. 75 in Melissa in Collin County;
- $3.03 at an Exxon/7-11 on Coit Road in far north Dallas,
- and $2.93 cash at a Circle K just down Coit Road.
For a gallon of diesel, the price dropped from $5.27 last year to $3.31 this year in Dallas and from $5.25 to $3.29 in Fort Worth-Arlington.
Bruce Bullock, Director of the Maguire Energy Institute at SMU said the demand for oil worldwide, which impacts what we pay here, is much lower than first predicted.
"It is very much a surprise," said Bullock.
Saudi Arabia has decided to cut production he said not in an effort to raise gas prices here, but to keep oil prices from dropping further.
Bullock also said it's rare for oil prices to drop during the first half of the year.
That usually happens during the second half, and as a result, he said he expects prices to hold steady or drop further.
"Demand for oil declines as people drive less," said Bullock. "Gasoline prices go down so they may well be put in a position where they have to take additional supplies off the market just to keep it where it is. So, I think the outlook for the rest of the year is pretty good."
Adrian Tuggle and her family are returning home, near Tulsa, where she said she's been paying less than drivers here, about $2.90 a gallon.
"Filling up now is about $65 and at one point in time, I was paying $80," Tuggle said. "I hope they keep going down."
Drivers say they're not surprised the lower prices at the pump are behind the expected increase in people traveling for July 4th.
"It was crazy packed this weekend," said Ross.
