US average for gas prices drops 5 cents, but not in Arizona

Kye Graves, Arizona Republic
·3 min read
16

Pump prices across the country are receiving some much-needed relief as a lower oil price has caused the national average for a gallon of regular gasoline to drop by a nickel, according to AAA.

In a news release last week, AAA spokesperson Andrew Gross said a break in surging oil costs caused the price to come "tumbling back into the upper $70s per barrel," and if that continued, it would result in drivers seeing gas prices fall.

That has since been the case, but not so much in Arizona. The average price in the state remained at $4.70 as of Thursday, and just above $5 in the Phoenix-Mesa area.

National average sits at $3.63

According to the AAA release, new data from the Energy Information Administration showed that gas demand had a significant increase from 8.52 million to 9.51 million barrels per day last week. Additionally, the total domestic gasoline stocks decreased by 2.4 million barrels of crude oil to 221.1 million barrels.

"Higher demand, alongside a decline in stocks, would typically push pump prices up; however, fluctuating oil prices have pushed them lower. If oil prices continue to decline, pump prices will likely follow suit," AAA said in the statement.

According to AAA, the national average currently sits at $3.63, about a 5 cent drop since last week. AAA said the average is 20 cents more than one month ago, but is 50 cents less than a year ago.

Some states have been faring much better than others with the recent decline. The 10 states with the largest decreases in their averages are:

  • Michigan (-12 cents)

  • Ohio (-11 cents)

  • Texas (-11 cents)

  • Indiana (-10 cents)

  • Iowa (-10 cents)

  • North Carolina (-9 cents)

  • Tennessee (-9 cents)

  • South Carolina (-8 cents)

  • Wisconsin (-8 cents)

  • Nebraska (-8 cents)

The 10 least expensive markets, according to the AAA release, are:

  • Mississippi ($3.11)

  • Arkansas ($3.22)

  • Louisiana ($3.22)

  • Texas ($3.23)

  • Alabama ($3.23)

  • Tennessee ($3.27)

  • South Carolina ($3.29)

  • Oklahoma ($3.32)

  • Georgia ($3.34)

  • Missouri ($3.35)

Arizona has not had the same luck

The recent nickel drop has not translated to Arizona pumps just yet, as the average for regular fuel across the Copper State hit $4.70 as of Thursday and had climbed over a cent from the past week.

"Unfortunately for Arizona, the region's supply of gas continues to be affected by maintenance at refineries in El Paso, Texas, and Artesia, New Mexico. Simply put, prices remain high because of supply and demand," AAA Mountain West Group spokesperson Julian Paredes told The Arizona Republic.

Regular gas sells for $5.19 a gallon at a station at Shea Boulevard and 32nd Street in Phoenix on April 19, 2023.
Regular gas sells for $5.19 a gallon at a station at Shea Boulevard and 32nd Street in Phoenix on April 19, 2023.

Even as some metro Phoenix areas have hit $5 a gallon, Paredes says some good news may be on the way, but at an inopportune time.

"The good news is that refineries are expected to come back online in the next few weeks (we don't know exactly when). That will alleviate a lot of the pressure on the region," Paredes said. "Unfortunately, this also comes just before Memorial Day weekend, the traditional start to summer travel season and when demand for gas typically ramps up again. So, it's difficult to say where exactly gas prices will be headed, but the main factor for Arizona right now are these refineries."

This article originally appeared on Arizona Republic: Gas prices are slowly dropping across US, but not in Arizona