A combination of aggressive production by U.S. oil producers and disarray in OPEC is giving Texas drivers an Independence Day gift at the gas pump, News Radio 1200 WOAI reports.
Dan Armbruster of AAA Texas says the average price in metro San Antonio today is $2.03.
"Cheaper than last week by six cents, and about four cents cheaper than what we were paying last year," he said.What is noteworthy is that this is the time of year when gas prices traditionally hit their highs for the year, and for prices to be falling in late June is almost unheard of.
I fact, a look back at the past decade of gas prices in San Antonio shows that, regardless of the prevailing price, we have seen increases between Memorial Day and Independence Day, and we usually see our perk price in early to mid July.
In 2008, for example, prices skyrocketed from $3.45 on May 1 to $3.96 on July 5, the all time high price.
In 2011, prices rose from $3.42 on April 9 to $3.73 on July 10. It was the same story even after the fracking revolution began driving prices down. In 2015, the high price for the year was $2.48 on July 9, and that was up from $1.94 on May 20.
But this year, the script is flipped. We saw our highest prices so far in 2017 when he hit an average of $2.21 on April 19. Since then, as OPEC disarray has continued and stabilizing oil prices as prompted additional drilling, prices have been gradually falling.
Today, it is not difficult to find stations in San Antonio selling gas for under $2 a gallon, and the average price in Amarillo is $1.92. We have not seen gas prices under $2 on Independence Day in this Century in San Antonio, even in the recession year of 2009.
"High oil production rates in the U.S., coupled with news that OPEC members Libya and Nigeria have increased output," Armbruster said.
The low gas price is one reason a record 3.2 million Texans are expected to travel fifty miles or more over the Fourth of July holiday, and the vast majority of them will be traveling by car.