LUBBOCK, Texas – Retail gasoline prices dropped to their lowest level since 2016 this week, according to a news release from AAA Texas.
The statewide average price for a gallon of regular unleaded fuel was reported at $1.678 on Saturday.
“Drivers in the Lone Star state haven’t seen gas prices this cheap in four years,” said AAA Texas spokesperson Daniel Armbruster. “Gasoline demand continues to decline as many people adhere to shelter in place orders.”
The latest Energy Information Administration report showed demand at nearly 5.1 million barrels per day – a nearly 52-year low – and it’s likely to push lower, AAA Texas said.
However, the Organization for Petroleum Exporting Countries (OPEC), Russia and other countries reached an agreement on Thursday to cut oil production by 10 million barrels in May and June.
Market analysts will be watching to see what the production cut and a drop in U.S. refinery utilization will do to gasoline prices going forward.
The U.S. refinery utilization average was down to 76%, a low last seen in October 2005. In the Gulf Coast region, the data showed a rate of 82%, which is the lowest since March 2013
AAA Texas said refineries are reducing production in hopes ofingbalance the amount of gasoline supply in the country.
The national average price for a gallon of regular unleaded fuel was reported at $1.837 on Saturday.
In Lubbock, AAA Texas reported the average retail price was $1.671 on Saturday.
The website GasBudddy.com, however, reported an average retail price of $1.64 in the Hub City. The website also noted drives could find gas prices as low as $1.47 a gallon.