A dramatic drop in oil prices translated into instant savings at the gas pump this week, as the price of gasoline retreated from its record high.
Fears that the U.S., along with the rest of the world, is facing a recession sent the oil market into a tailspin, with the price of oil falling by about $18 a barrel.
AAA’s daily fuel price survey shows that the national average price of regular is $4.92 a gallon, about eight cents a gallon lower than a week ago. A year ago, the price was $3.07.
The average price of premium gas is $5.63 a gallon, five cents lower than last Friday. The average price of diesel fuel is $5.80 a gallon, a penny more than last week.
“The recent high prices may have led to a small drop in domestic gasoline demand as fewer drivers fueled up last week,” said Andrew Gross, AAA’s spokesperson. “This dip, coupled with less costly oil, has taken some steam out of surging pump prices. And this is happening right before drivers gas up for what AAA forecasts will be a busy July 4th travel weekend.”
Nearly every state has lower gasoline prices compared to last week. The statewide average fell by 12 cents a gallon in Indiana, 10 cents in South Carolina and Michigan; nine cents in Alabama, eight cents in Illinois and Louisiana, and seven cents a gallon in California.
States with the most expensive gas
These states currently have the highest prices for regular gas, according to AAA:
States with the cheapest gas
AAA reports that these states currently have the lowest prices for regular gas:
South Carolina ($4.48)