Gas prices drop, but for how long?

Delaware gas prices have dropped by 14 cents a gallon during the past week. The question is whether hurricanes will change things in a hurry.

The price drop cuts the price of filling up a work truck with 20 gallons of regular by $2.80. At the same time, the price at the pump is only about a nickel below a year ago. In 2022, the pump price neared $5 a gallon but dropped sharply in the summer.

According to AAA, Delaware had the 10th biggest price decrease among the 50 states as of last week.

AAA’s Fuel Price Finder reported prices for regular as low as $3.41 a gallon at a Liberty station in Bridgeville, Sussex County. The lowest prices sometimes require cash since credit card companies charge a 2% processing fee.

The price of crude oil has remained in the $80 range despite increased consumption.

“Although the national average did a U-turn this week, the road ahead could lead to higher prices,” said Andrew Gross, AAA spokesperson. “Ongoing concerns regarding potential storm activity could hinder falling pump prices this fall.” 

Hurricanes  Idalia, bearing down on Florida and Franklin out in the Atlantic, will not affect the Gulf Coast, the site of much of the nation’s oil refining and production.

According to data from the Energy Information Administration gas demand jumped from 8.85 to 8.91 million barrels a day. Meanwhile, total domestic gasoline stocks increased slightly from 216.2 to 217.6 million barrels. Although demand increased, growing stock levels contributed to pushing prices lower. 

Oil prices have declined this week amid market concerns that an economic slowdown in China, the world’s largest importer of crude oil, could push global oil demand down, which could also lead to lower prices.

Drivers can find current gas prices along their Labor Day travel route using the AAA TripTik Travel planner.