Gas prices continue to drop with Delaware heading toward the $1.90 a gallon mark, Wilmington-based AAA Mid-Atlantic reported.
The national average price of regular unleaded gasoline has declined to $2.12 per gallon, the lowest level in more than 100 days and the lowest price for this date since 2004.
Delaware’s price at the pump dropped four cents during the week, but rose by a penny on Monday. The lowest prices were on the Capitol Trail area east of Newark, with one station posting a $1.80 a gallon price.
New Jersey continues to have the lowest prices, but that could change if an agreement is reached on a quarter-a-gallon gas tax increase. The Garden State’s trust fund has run out of money and some projects have been suspended.
New Jersey has one of the lowest gas taxes in -the nation, with neighboring Pennsylvania having the highest. Efforts to raise the gas price in Delaware have gone nowhere, with an increase in vehicle fees providing a temporary fix.
Prices in Delaware tend to be lower in areas with independent gas stations, rather than price leaders like Wawa, Royal Farms and major oil companies.
Even the Lewes-Rehoboth area is seeing prices below $2 a gallon during the peak of the tourism season.
CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline (*indicates record high)
| 8/7/2016 | Week Ago | Year Ago | |
| National | $2.12 | $2.14 | $2.62 |
| Pennsylvania | $2.21 | $2.25 | $2.69 |
| Philadelphia (5-county) | $2.18 | $2.22 | $2.74 |
| South Jersey | $1.83 | $1.86 | $2.35 |
| Wilkes-Barre | $2.22 | $2.25 | $2.61 |
| Delaware | $1.93 | $1.97 | $2.48 |
| Crude Oil |
$41.80. per barrel |
$41.60 per barrel |
$51.57 per barrel |
At the close of Friday’s formal trading session on the NYMEX, West Texas Intermediate Crude closed up 20 cents from last week to settle at $41.80 per barrel. WTI dropped below $40 on Tuesday, for the first time since April 18 but remained above $40 the rest of the week.
Ample domestic oil supplies and a strengthening U.S. dollar have contributed to the commodity testing lows not seen since spring. WTI is priced in U.S. dollars, so as the dollar strengthens, the price of oil becomes relatively more expensive for those holding foreign currencies. This makes oil a less attractive investment and helps reduce prices.
“As summer rolls on, gas prices across most of the country and the Mid-Atlantic continue to slide, which is welcome news for motorists,” said Jana L. Tidwell, Manager of Public and Government Affairs for AAA Mid-Atlantic. “With gasoline supplies high and oil prices low, pump prices are likely to remain relatively cheap through the remainder of summer’s peak road trip season.”
Despite the lowest seasonal gas prices in more than a decade, unexpected events could trigger higher prices. Rising crude oil costs due to a disruption in supply, stronger than expected economic growth or tensions overseas could lead to higher pump prices nationwide, or regional prices could increase due to refinery problems, production cuts, stronger than anticipated demand, or hurricanes that impact distribution and production.
Also refiners including PBF, which operates Delaware’s only refinery, have indicated production cuts will take place in an effort to bring supply and demand into balance.
To find out local prices, log on to AAA’s Fuel Price Finder (http://www.AAA.com/fuelfinder).
