Drop in Oil May Not Translate to Lower Gas Prices in Louisiana
Drivers in Louisiana still remember what gas prices were like about one year ago. That's when the nationwide average price for a gallon of regular fuel was over $5.00 a gallon. Here in Louisiana it never got that bad but most of us did feel a pinch at the pump last summer.
Oil industry analysts blamed last summer's spike in prices on a number of things, the conflict in Ukraine, the decisions of OPEC, and just the post-Covid economy, in general, were contributing factors to the more than $4.00 per gallon motorists were paying to fuel their vehicles in Louisiana at that time.
In most cases, as goes the price of oil so goes the price of fuel for our cars. We should note that last Wednesday the price of crude oil dropped to below $70 a barrel. Oil prices haven't been that low in more than a year. So, based on history that should mean Louisiana drivers should soon start paying less at the pump, right?
Donald Redman, a fuel industry analyst for the American Automobile Association, says lower fuel prices could be coming our way but don't expect a big drop in price, at least anytime soon. Redman says a short-term drop in price could happen but will likely be thwarted by the seasonal change refineries make when they switch from winter blends of fuel to summer blends.
There are also concerns with the conflict in Ukraine that could affect the oil markets and the collapse of a couple of banks in the U.S. and around the world could also play a part in how the price of oil and ultimately the price of fuel might fluctuate.
Triple-A is reporting that the average price of a gallon of regular gas in Louisiana is $3.09 cents. They are suggesting to their membership to budget for fuel prices of at least $3.00 a gallon as the summer driving season begins.
In the Lafayette area, we found fuel prices as low as $2.76 a gallon. Meanwhile, in Lake Charles, prices were about the same with the lowest we found on Gas Buddy listed at $2.75 a gallon. And when you compare that to the national average price of $3.46 a gallon, we're sitting pretty good down here along the bayous.
For those planning a beach trip in the near future, we suggest you fill up in Mississippi or Alabama instead of filling up in Florida. The prices in Alabama and Mississippi are about the same as Louisiana prices. Meanwhile, in Florida, gas prices are about .25 cents to .30 cents higher.
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