Gas prices low in Alabama but for how long?
MONTGOMERY, AL (WSFA) - Good news for drivers everywhere; Gas prices are going down! Alabama is one of nine states where the average prices at the pump have fallen below the $2 per gallon mark.
The current national average is $2.24 a gallon, down seven cents in a week. The current Alabama average is $1.93 a gallon, down four cents in a week. Both of those averages are down a penny since Wednesday. Alabama drivers are now paying, on average, 22 cents less per gallon than we were a month ago.
President Donald Trump took credit for the price drops this week.
“If you look back a few months, gasoline was at eighty three dollars a barrel. That was going to be bad and it was going to one hundred and some people were saying one hundred and twenty five," Trump said. “Rick. And I made calls. I say you better let that oil, that gasoline flow. And they did. And now it’s down to 44. And I put out a social media statement yesterday. I said do you think it’s luck that that happened? It’s not luck. I called up certain people and I said let that damn oil and gasoline ... you let it flow. The oil. It was gone up to one hundred and twenty five dollars. If that would have happened then you would have had a recession, depression like we’ve had in the past.”
Right now, more crude oil is being produced than what can be consumed. In other words, the supply is too high for the demand, and it's costing more to produce the oil than what it's being sold for.
Gasbuddy released a report saying gas will likely climb back up in the three dollar range. According to the Consumer Energy Alliance, OPEC and its Russia-led allies have agreed to take 1.2 million barrels off the market over the next six months, which will raise the price of a gallon over time to as high as $3.
There's also a possibility the Federal gas tax will impact gas prices. Congress has been working on an infrastructure bill that could impose higher taxes.
Either way, the Consumer Energy Alliance says when refineries change over to the summer blend, we see a 10 to 20 cent increase nearly every year.
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