Gas prices in Columbus and Ohio fall ... and may continue to drop
Gas prices in Columbus and statewide dropped more this week and may continue down, according to AAA of Ohio.
The average price of regular unleaded gasoline was $4.27 per gallon in Franklin County Tuesday, down from a record high of $5.09 per gallon on June 7, AAA reported.
Drivers can expect prices to continue to fall, at least in the short term, said Kimberly Schwind, director of public affairs for AAA of Ohio.
Gas-saving tips: How to save on gas
Why are gas prices going down?
The price of crude oil, which is set by global markets, accounts for more than half the price of a gallon of gasoline, she said. A barrel of crude oil now sits at roughly $90, down from $120 earlier this summer.
The five-week drop is driven by decreased demand as Americans cut back on travel, Schwind said. Fears of a recession and near-record-high inflation numbers are also keeping oil prices down, she added.
"We've seen a dramatic decrease in prices, but they're still a lot higher than many people's budgets can handle,” Schwind said.
Gas costs are set to keep going down as long as demand keeps falling, she said. But unforeseen circumstances could push prices back up.
"We are in the midst of hurricane season," Schwind said. "If a major hurricane were to take our refining capacity, we could see those prices go back up."
And a better-than expected earnings report from several major American corporations on Tuesday could encourage oil producers to increase prices, said Patrick De Haan, the head of petroleum analysis for GasBuddy.
"That could reduce the risk of the economic slowdown that many have been looking for," he said. "The coast is not clear."
Statewide, the average price of a gallon of gasoline is $4.33, about a dime lower than the national average, according to AAA. The statewide price crept above $5 per gallon in Ohio for the first time ever last month.
High gas prices have changed driving habits
Despite the drop, fuels costs are still too high for Aaron Paul, 35, who lives in Dublin and commutes to Downtown.
More: High gas prices ripple through the economy
“I’m working from home as much as I can,” he said as he filled up at a GetGo station on Fifth Avenue Tuesday morning.
Paul said he and his wife stopped spending money on some non-essentials to help compensate for fuel costs.
“We used to go out to eat a couple of times a week; now we only eat at home,” he said. “And we’re trying to spend less on groceries.”
In a survey of 1,051 American drivers conducted by AAA in the spring, 59% said $4 per gallon was the tipping point at which their driving habits change and they cut unnecessary expenses from their budgets.
More: Gas prices in Ohio and other Midwestern states are spiking. Here's why
Where can you find the lowest gas prices?
Ohio’s lowest gas prices are in Circleville, according to GasBuddy. Gas stations advertised prices as low as $3.70 per gallon Monday.
Most stations remained above $4 per gallon in Franklin County, but a Sheetz station on Seldom Seen Road in Powell advertised regular unleaded gasoline for $3.75 per gallon Tuesday, according to GasBuddy.
pcooley@dispatch.com
PatrickACooley
This article originally appeared on The Columbus Dispatch: Gas prices in Columbus: Gas prices dropping, but what's next?
