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Finally! Gas prices dip as oil prices fall

Despite the drop, fuel prices remain near their highs of the year

Gas prices concept
Photo (c) mathieukor - Getty Images
Just in time for the holidays, motorists are getting a slight break at the gas pump. As oil prices plunged this week, the price of gasoline began to go down.

AAA reports that the national average price of regular gas is $3.37 a gallon, two cents lower than last Friday. The average price of premium gas is $4.00, two cents less than last week. The average price of diesel fuel is also two cents less than last week, at $3.62 a gallon.

Oil prices began falling late last week when news broke about the new Omicron variant of the coronavirus. The market feared that the new variant would slow economic growth, something at this point that is far from certain.

“It’s too soon to tell if fears of a global economic slowdown caused by the Omicron variant will push oil prices lower for the long term,” said AAA spokesperson Andrew Gross. “But for now, the upward pricing pressure due to tightened supply and high demand seems to have abated, and that will likely result in pump prices stabilizing.”

While the national average drifted only slightly lower during the week, motorists in a handful of states enjoyed sharper declines. The statewide average fell six cents a gallon in Missouri and is four cents lower in Utah, Texas, and Kansas. Meanwhile, the statewide average rose four cents a gallon in Arizona, where prices have risen 25 cents a gallon over the last four weeks.

States with the most expensive gas

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

  • California ($4.70)   

  • Hawaii ($4.36)  

  • Nevada ($3.95) 

  • Washington ($3.87) 

  • Oregon ($3.79) 

  • Arizona ($3.79)      

  • Alaska ($3.72) 

  • Idaho ($3.67)

  • Utah ($3.65)      

  • Pennsylvania ($3.58)

States with the cheapest gas

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

  • Oklahoma ($2.96) 

  • Texas ($2.97)  

  • Arkansas ($3.00)  

  • Missouri ($3.01)  

  •  Kansas ($3.02) 

  • Mississippi ($3.03)

  • Kentucky ($3.06)

  •  South Carolina ($3.08)  

  • Wisconsin ($3.09)

  • Tennessee ($3.09)

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