Despite the turmoil in oil prices following Hamas’s attack on Israel, the national average price of a gallon of gas decreased last week.
According to AAA, a nonprofit federation of motor clubs that tracks fuel prices, the price of a gallon of standard unleaded gasoline dropped by nearly 12 cents on Friday, to $3.628. Despite oil’s $5 increase to roughly $90 per barrel in the previous week, this week saw a decrease. More than half of the cost of a gallon of gas is attributable to the price of crude oil, which is refined into gasoline.
However, AAA notes that this increase is nowhere near the short spike of about $40 per barrel that followed Russia’s invasion of Ukraine last year. Russia, unlike Israel and the Palestinian territories, is a major oil producer, the report noted.
“As long as this war does not spread to include more countries in the region, the effect on the oil market will remain muted,” said AAA spokesperson Andrew Gross in a statement.
For what reason have gas prices dropped?
Californians may not get much relief at the pump, with the average price of a gallon of unleaded gasoline standing at $5.669 across the state. AAA reports that prices have dropped from their previous week’s $5.878 level by around 21 cents.
As in the rest of the country, Californians are seeing lower gas prices as a result of reduced demand and the introduction of cheaper winter fuel blends. The Golden State got an early start this year by releasing its winter mix, which contains a higher concentration of a cheaper component that helps vehicles start in colder conditions. The state of California often waits until the end of October to make the change. According to AAA California spokesman Doug Shupe, using winter blend gas can save drivers 15 to 20 cents per gallon.
The price of gas in California is ridiculous. Gas prices in California are typically higher than in the rest of the country because:
Expenses are high due to the local tax rate. According to the U.S. Energy Information Administration, taxes account for roughly 13 cents per gallon.
The state of California requires a specific, more expensive mix since it is better for the environment. Having to rely on domestic or international supplies and far away refineries, some of which were closed last month for routine maintenance. “There aren’t any pipelines around here,” Shupe replied.
