Falling oil prices keep dragging down gas prices

Photo (c) Grace Cary - Getty Images

The national average is getting closer to $4 a gallon

Motorists may still be grumbling about high gasoline prices, but at least they're getting lower from one day to the next.

AAA’s daily fuel price survey shows that the national average price of regular gas is $4.11 a gallon, 14 cents less than last Friday. However, that’s still more than a dollar a gallon higher than a year ago.

The average price of premium gas is $4.85 a gallon, 15 cents less than last week. The price of diesel fuel is $5.19 a gallon, 12 cents lower than a week ago.

Patrick DeHaan, head of petroleum analysis at GasBuddy, pointed out on Twitter this week that spot gasoline prices in Chicago are at their lowest point since Russia invaded Ukraine in February. He interprets that to mean gas prices will keep falling.

Growing concerns about a possible recession may have promoted some motorists to drive less. After staying strong through much of July, gasoline demand is falling. Also helping bring down gas prices, the price of crude oil fell below $90 a barrel on Thursday for the first time since February.

Most states experienced double-digit declines in the average price of gas this week. The statewide average fell by 22 cents a gallon in Colorado; 21 cents in Ohio, Indiana, and Illinois; 17 cents a gallon in Oklahoma and Kentucky; and 16 cents a gallon in Maine.

States with the most expensive gas

These states currently have the highest prices for regular gas, according to AAA:

  • California ($5.53)  

  • Hawaii ($5.42)    

  • Alaska ($5.05)   

  • Nevada ($5.04)  

  • Oregon ($5.00)  

  • Washington ($4.95)  

  • Idaho ($4.85)  

  • Utah ($4.77)  

  • Maine ($4.54)          

  • Illinois ($4.52)    

States with the cheapest gas

AAA reports that these states currently have the lowest prices for regular gas:

  • Texas ($3.64)  

  • South Carolina ($3.66)   

  • Georgia ($3.69)  

  • Tennessee ($3.70)    

  • Arkansas ($3.70)   

  • Mississippi ($3.71)

  • Alabama ($3.72)   

  • Oklahoma ($3.71)    

  • Kentucky ($3.74)   

  • Louisiana ($3.76) 

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