Gas prices continue to drop across Western New York and the country, but are still much higher than they were a year ago. Pictured is the Mobil gas station on North Main Street in Jamestown. P-J photo by Timothy Frudd

Gas prices are decreasing across Western New York, but remain higher than they were a year ago.

The regional trend matches the national trend. Across the country, the average U.S. price of regular-grade gasoline plunged 19 cents over the past two weeks to $4.86 per gallon. Industry analyst Trilby Lundberg of the Lundberg Survey said Sunday that the continued decline comes as crude oil costs also fall. According to the survey, the average price of diesel dropped 13 cents since June 24 to $5.76 a gallon.

“Assuming oil prices do not shoot up from here, motorists may see prices drop another 10-20 cents as the oil price cuts continue making their way to street level,” Lundberg said in a statement.

The average price is a bit lower in Western New York, ranging from $4.76 in most of Chautauqua County to $4.72 in the Batavia area.

Early last week, unleaded gasoline dropped below $5 a gallon at about 80% of gas stations across the country as oil prices dropped amid broad market concern regarding a potential slow, or even stall, of economic growth due to rising interest rates and inflation. A lower economic growth rate than expected could cause crude demand to further decline, leading pump prices to follow suit. On Monday morning, oil prices are at $103 to $105, down slightly from the $103 to $107 per barrel seen a week ago.

Data released July 6 by the Energy Information Administration showed that gas demand sat at 8.93 million barrels a day, which was lower than last year’s rate of 9.11 million barrels a day at the end of June. On the other hand, domestic gasoline stocks increased by 2.6 million barrels of petroleum liquids to 221.6 million barrels of petroleum liquids. These supply and demand dynamics, along with decreasing oil prices, have pushed pump prices lower. If these trends continue, drivers will likely continue to see relief at the pump.

“The national average has declined for 27 days straight, or four weeks, the longest decline in average gas prices since the pandemic started in 2020. Average gas prices are down nearly 40 cents, with Americans shelling out $140 million less on gasoline every day than they did a month ago,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “We may see the trend last a fifth week, as long as oil prices remain cooperative and don’t surge beyond $105 per barrel, and as long as refinery production of gasoline remains strong. But we’re not completely out of the woods yet – we could also see a sharp reversal in the decline. There remains risk of a spike in prices that could send us to new record levels in August, should any disruptions occur. It could be a wild ride, but for now, the plummet at the pump shall continue.”