AAA Texas: Gas prices increase, but will they drop in September?

SAN ANTONIO (KTSA News) — Gas prices are experiencing a sharp increase in San Antonio, according to AAA Texas Weekend Gas Watch.

Over the last seven days, drivers in the Alamo City have seen a 21-cent jump in the average price for a gallon of regular unleaded. A week ago, the average price for regular was $3.30 per gallon, but that figure has jumped up to $3.51 per gallon as of Friday morning. For further perspective, the average price for regular in San Antonio right now is 47 cents more than last year’s mark of $3.04 per gallon for regular.

The direction gas prices are taking across much of Texas is a departure from what generally happens at this time of year.

“Although September usually sees gas prices decrease due to reduced demand, pump price fluctuations persist throughout the Lone Star State. Despite higher September prices, fuel demand remains strong,” said Daniel Armbruster, AAA Texas spokesperson. “The continuous rise in crude oil prices, the primary gasoline ingredient, is likely preventing the usual September decline in retail fuel prices.”

The statewide gas price average in Texas is $3.42 for a gallon of regular unleaded fuel. That price is five cents more than on this day last week and 25 cents more per gallon compared to this day last year. Of the major metropolitan areas surveyed in Texas, drivers in El Paso are paying the most on average at $3.83 per gallon while drivers in the Sherman/Denison area are paying the least at $3.33 per gallon.

The national average price for a gallon of regular unleaded is $3.86, which is six cents more when compared to this day last week and 16 cents more than the price per gallon at this same time last year.

Despite the end of summer driving season and higher fuel costs, fuel demand remains strong. Coupled with rising crude oil prices, this is pushing fuel price averages upward. Crude oil prices are up by nearly two dollars per barrel compared to last week, maintaining a mostly steady ascent since June’s outset. Given that crude oil comprises approximately 50 to 60 percent of each gallon’s cost, these elevated crude prices could hinder the typical September drop in gas prices.