Sept. 14–The price of gas dropped 2 cents this week but remains the only larger city in the state with a price above $3, according to AAA Texas.
The organization reported Odessa also had a 2-cent decrease. Statewide, the average drop was 1 cent, AAA Texas said. Midland’s average price of regular unleaded gas — $3.04 — is still 43 cents a gallon higher than the state average. Midland’s average is also 52 cents higher than the lowest average in the state — $2.52 in Lubbock, which is one of the closest metropolitan areas to the Midland-Odessa area.
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.
AAA Texas reports gas prices could see bigger drops if inventories increase and demand decreases, which market analysts anticipate will occur in the coming weeks.
“While demand for gasoline remains strong, the switchover to winter-blend gasoline is fast approaching by the end of this week into next,” said Daniel Armbruster, AAA Texas/AAA New Mexico spokesman. “This should cause gas prices to decrease, in Texas and the southern region of the United States, over the coming days.”
It could be happening already. TexasGasPrices.com reports a low price in Midland-Odessa of $2.67 at an H-E-B in Odessa. That is 13 cents lower than any location in Midland and 20 cents lower than any non-membership station.
Prices in Midland have not increased in nearly two months, but there is still considerable room to go. The third highest average behind Midland — $3.04 — and Odessa — $2.97 — is Abilene at $2.70 a gallon. Prices in Midland have also increased 47 cents in the last year. The average increase across the state from one year ago is 9 cents, according to AAA Texas.
Across the region, larger cities resemble Lubbock more than Midland with an average price of $2.54 reported in San Angelo, $2.56 reported in Amarillo, $2.57 in Wichita Falls and $2.64 in El Paso.
Gas price report
Cheapest gas: $2.80 (Sam’s Club, Tradewinds/SH 191)
Cheapest gas (non-membership club): $2.87 (Murphy USA, Briarwood/Midland Drive)
Cheapest prices in West Texas: Lubbock $2.41, Amarillo $2.43, San Angelo $2.43 El Paso $2.44, Abilene $2.59, Odessa $2.67, Midland $2.80
Thursday $2.985 $2.605
Last week $3.006 $2.617
Last month $3.018 $2.627
Last year $2.552 $2.495
Stewart Doreen is the Editor for the Midland Reporter-Telegram. Read more of his stories here. — email@example.com |
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