AAA reported that Delaware gas prices fell about seven cents a gallon last week.
The price at the pump is still about 19 cents above the figure from a year ago but 74 cents below the same period a year ago. The price of regular briefly approached $5 a gallon in Delaware after Russia invaded Ukraine.
AAA reported that the recent decline is due to lower crude oil prices driven by mounting concern over a future recession. Crude was trading at about $75 a barrel as of Friday morning.
Diesel prices fell more than a dime a gallon.
|Week Ago Avg.||$3.540||$3.976||$4.252||$4.012|
|Month Ago Avg.||$3.276||$3.711||$3.977||$3.985|
|Year Ago Avg.||$4.221||$4.595||$4.835||$5.355|
“The national average reached $3.68 last week, and that might be the peak price for now,” said Andrew Gross, AAA spokesperson. “As long as the oil cost keeps wobbling around the low to mid $70s per barrel, drivers will benefit when they fuel up.”
According to new data from the Energy Information Administration, gas demand increased significantly from 8.52 to 9.51 million barrels a day last week. The spike in demand surprised market observers, but the estimate could be revised when the government agency releases final demand measurements for April.
Meanwhile, total domestic gasoline stocks decreased by 2.4 million bbl to 221.1 million bbl. Higher demand, alongside a decline in stocks, would typically push prices at the pump higher. However, fluctuating crude prices have offset higher demand.
If a recession occurs, oil demand and prices will likely decline.
To check out gas prices in your neighborhood, log on to AAA’s Fuel Price Finder.