Oct. 27–The average price of gas in Midland fell by 5 cents this past week, according to AAA Texas.
The organization reported drivers across the city enjoyed the same relief as the average driver across the state. Statistics this week show a decrease in the average price of gas in all 27 larger metropolitan areas across the state. The largest decrease in Texas was a 9-cent decrease in Sherman-Denison, which also has the overall lowest average price of gas — $2.44 a gallon.
Midland again claimed the position as the city with the highest average price. An average of $3.06 a gallon means Midland is still one of two cities with an average over $3 (Odessa is the other at $3.02). Drivers in Midland on average are paying 22 cents less than the national average ($2.84), 48 cents less than the state average ($2.58) and 62 cents less than the average in Sherman-Denison.
Distributors have told the Reporter-Telegram there are many complexities in the fuel business that impact pricing. They pointed to the high cost of transportation from Gulf Coast refineries and Midland’s distance from pipelines. There are also issues with the high cost of living, at least in Midland and Odessa, where rents are climbing at rates incomparable around the nation. There’s also the supply-and-demand factor. There is a great demand in Midland and Odessa relative to the amount of supply.
The average price in Midland is 62 cents higher than the same time last year. In late October of 2017, the average price in Midland was $2.44, which was lower than the national average and 21 cents higher than the state average.
Across the region, the following average prices and amount of decrease were reported: $2.51 in Amarillo, down 5 cents; $2.52 in San Angelo, down 6 cents; $2.57 in Lubbock, down 5 cents; $2.73 in El Paso, down 5 cents; $2.74 in Abilene, down 3 cents.
AAA Texas reported this week that reduced refinery operations, because of peak maintenance season, have contributed to stable gasoline inventories amid lower demand, which is a contributing factor driving gas prices down. Gas prices have also dropped despite some market uncertainty looking ahead to possible geopolitical issues, specifically the Iranian sanctions expected to take effect in November.
“For the next couple of weeks, market analysts suggest drivers can anticipate prices at the pump to fall, but there are concerns that Iranian sanctions could cause prices to reverse course once sanctions take effect in November,” said Daniel Armbruster, AAA Texas/AAA New Mexico spokesman.
The average price for AAA Texas was higher than the average price reported Thursday afternoon at TexasGasPrices, which showed the average price in Midland-Odessa at $2.999 a gallon. AAA Texas has previously stated that its survey takes into account more prices from around Midland and Odessa.
Gas Price report
Cheapest gas: $2.75 (Sam’s Club, Tradewinds/SH 191)
Cheapest gas (non-membership club): $2.80 (Murphy USA, Briarwood/Midland Driver)
Cheapest prices in West Texas: Amarillo $2.34, San Angelo $2.34, Amarillo $2.36, El Paso $2.37, Abilene $2.67, Odessa $2.69, Midland $2.75
Thursday $2.999 $2.561
Last week $3.046 $2.636
Last month $2.970 $2.616
Last year $2.436 $2.248
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