Unclear If Oil Price Plunge Will Be Felt At Gas Pumps, AAA Says

By Editor, Times of San Diego

March 20, 2023

The average price of a gallon of self-serve regular gasoline in San Diego County dropped Sunday for the ninth time in 10 days, decreasing eight-tenths of a cent to $4.895.

The average price has dropped 6.4 cents over the past 10 days, including 1.1 cents Saturday, according to figures from the AAA and Oil Price Information Service.

It is 5.9 cents less than one week ago and 99.3 cents lower than one year ago, but 9.9 cents more than one month ago.

The average price has dropped $1.54 since rising to a record $6.435 on Oct. 5, 2022.

The national average price dropped for the fifth time in six days, decreasing three-tenths of a cent to $3.446. It has fallen 2.7 cents over the past six days, including eight-tenths of a cent Saturday.

The national average price is 2.6 cents less than one week ago and 81.6 cents lower than one year ago, but 3.3 cents more than one month ago. It has dropped $1.57 since rising to a record $5.016 on June 14.

With the global oil price plunging into the low-to-mid $60 per-barrel range for the first time since August 2021 and the fact that “the cost of oil accounts for 55% of what we pay for gas, it’s fair to wonder how soon prices will drop at the pump,” said Andrew Gross, an AAA national public relations manager.

“Gas stations paid for the fuel that is in their underground tanks weeks ago, when oil was nearly $15 more a barrel,” Gross said. “So it will take time for any savings due to cheaper oil to be seen at the pump and that is assuming the oil price does not rise again.”

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