TAMPA, Fla. (WFLA) — Gas prices are still elevated, but according to reports from AAA, the costs are starting to come down. In the past week, the national gas prices have come down nine cents, but in Florida, they’ve dropped $0.11, according to AAA’s daily price tracker for gasoline and diesel.
It’s the third week in a row that gas prices have come down. Last week, gas prices dropped $0.14. Before that, $0.07. With the latest reported drop from AAA, gas prices have come down a total of $0.32 in three weeks.
While the U.S. price average is currently $4.77 per gallon of regular gasoline, and $4.51 in Florida, some areas are higher, and some lower. In Tampa Bay, the county-by-county prices are slightly lower than the state average in some areas.
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“Domestic gasoline demand dipped recently, which took some of the pressure off of pump prices. About 80% of stations are now selling regular for under $5 a gallon,” Andrew Gross, a AAA spokesperson, said. “But July is typically the heaviest month for demand as more Americans hit the road, so this trend of easing prices could be short-lived.”
AAA’s latest oil and gas analysis said gas demand is lower than last month, and that current “supply/demand dynamics” combined with decreasing prices of oil, have helped lower the prices we’re seeing at the pump.
The oil prices reported for Brent Crude Oil on Trading Economics, a commodities tracker, showed costs at under $100 per barrel when they opened Wednesday morning.
According to AAA, “crude prices faced strong resistance amid broad market concern regarding the potential for economic growth to slow or stall due to rising interest rates and inflation, which could send prices lower this week if market concerns persist.”
The U.S. Energy Information Administration also tracks the cost of gas, but also tells Americans how the price at the pump is broken down. The current formula was updated in May, showing that the bulk of the cost is due to the price of oil barrels, and the cost to refine it into the fuel we use in our vehicles.
The percentage of oil used in the formula for calculation is currently a reported 59%, meaning that the cost of gas is basing just under 60% of its price at the pump on the cost per barrel of oil. To get that percentage, oil barrel prices are divided by 42, the number of gallons of oil per barrel.
Florida remains in the top 10 for U.S. gas price decreases, joined by Texas, Delaware, Arizona, Illinois, Indiana, Ohio, South Carolina, Virginia, and Maryland, according to AAA.
Next Wednesday, the U.S. Bureau of Labor Statistics will release the June Consumer Price Index. That report will show how much the decreasing gas prices have affected national inflation levels, as prices for many consumer products remain high in the U.S. and abroad.