Analyst shares impact, prediction for banking system concern with gas prices

Published 6:28 am Monday, March 20, 2023

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The broad concern over recent failures of the U.S. and global banking system is putting enough downward pressure on oil prices that motorists saw a reprieve in rising gasoline prices in the national average last week.

But, it may be temporary in nature, and is unlikely to be a long lasting trend, according to Patrick De Haan, head of petroleum analysis at GasBuddy.

“While California and areas of the West Coast saw some moderation in price, supply challenges amidst the transition to summer gasoline have led to sharp price increases in Arizona, and other markets saw varying impacts at the gas pump over the last week,” De Haan said.

“Should the outlook for the banking sector improve, we could again see gasoline prices race higher, while continued or additional distress could raise the possibility of a broader economic slowdown, keeping gasoline prices in check. Overall, there are a lot of possibilities.”

Average gasoline prices in Texas have fallen 7 cents per gallon in the last week, averaging $3/g today, according to GasBuddy’s survey of 13,114 stations in Texas.

Prices in Texas are 4 cents per gallon higher than a month ago and stand 90.2 cents per gallon lower than a year ago.

The national average price of diesel has fallen 5.6 cents in the last week and stands at $4.25 per gallon.

According to GasBuddy price reports, the cheapest station in Texas was priced at $2.59/g Sunday while the most expensive was $4.17/g, a difference of $1.58/g.

The national average price of gasoline has fallen 4.2 cents per gallon in the last week, averaging $3.40/g today.

The national average is up 4.3 cents per gallon from a month ago and stands 82.9 cents per gallon lower than a year ago, according to GasBuddy data compiled from more than 11 million weekly price reports covering over 150,000 gas stations across the country.

Neighboring areas and their current gas prices:

• Midland Odessa – $3.01/g, down 9.2 cents per gallon from last week’s $3.11/g.
• San Antonio – $3.01/g, down 11.0 cents per gallon from last week’s $3.12/g.
• Austin – $3.04/g, down 5.9 cents per gallon from last week’s $3.10/g.

Historical gasoline prices in Texas and the national average going back ten years:

March 20, 2022: $3.90/g (U.S. Average: $4.23/g)
March 20, 2021: $2.64/g (U.S. Average: $2.88/g)
March 20, 2020: $1.89/g (U.S. Average: $2.11/g)
March 20, 2019: $2.36/g (U.S. Average: $2.60/g)
March 20, 2018: $2.32/g (U.S. Average: $2.56/g)
March 20, 2017: $2.07/g (U.S. Average: $2.29/g)
March 20, 2016: $1.82/g (U.S. Average: $1.98/g)
March 20, 2015: $2.22/g (U.S. Average: $2.43/g)
March 20, 2014: $3.34/g (U.S. Average: $3.53/g)
March 20, 2013: $3.56/g (U.S. Average: $3.70/g)