SAN ANTONIO — Gas prices tumbled this week big time, and are about 70 cents cheaper than this time last year. There are several reasons for the big drop.
"They just came down a bunch today. That's almost the biggest drop I've seen," said Dawn who works at the Shell on Fredericksburg Road. She says prices dropped 40 cents overnight! It made today busier. Dawn added, "We just dropped ours down a couple of hours ago. So this is the first big jump."
Thomas Tunstall, the senior research director for the UT San Antonio Institute for Economic Development said, "Gas prices were already moderating as we went into the summer season, which typically puts a little pressure on demand. But because of ample, ample supplies, China's economy is slowing down a little bit."
Another reason for the big drop in gas prices, the big drop in oil prices. Tunstall told us, "Production in the U.S. is up. So there's there's a third good supply of of crude oil, which is at least about half the cost of the production of gasoline."
Nationally three months ago the price for a gallon of regular was $3.44, 21 cents higher than Wednesday. In San Antonio prices dropped almost 40 percent in the past three months dropping from near three bucks to $2.59. Tunstall added, "I think there's there's room for brutal to fall further, which should have a corresponding impact on gasoline prices as well."
Across the country the national average for a gallon of regular Wednesday sat at $3.23. Here in Texas the average price was $2.75. But drivers in San Antonio had it even better, with a price per gallon of $2.59. And it could come down even more heading into the cooler months when we switch away from the summer blend of gasoline. Tunstall said, "And the winter mix is a little less expensive to produce. So again, another potential downward push on oil prices."
For a list of gas stations and inexpensive gas prices near you, check out GasBuddy.