Austin gas prices stagnate as outbreak drags down demand

The resurgence of the coronavirus -- and a resulting drop in demand from drivers -- is keeping gasoline prices fairly stable in the Austin metro area, according to new industry data.

Austin-area gas prices have fallen 2.7 cents per gallon in the past week and currently average $1.80 per gallon for regular unleaded gasoline, according to GasBuddy.com, an industry website that tracks fuel prices around the nation.

The local price per gallon is 5.4 cents lower than a month ago and 59.1 cents lower than a year ago, according to GasBuddy.

The recent stability in prices is in contrast to two months ago, when GasBuddy reported local gas prices ticking up for seven straight weeks partly due to reopening of some area businesses.

“Gas prices have remained in very familiar territory for the sixth straight week as gasoline demand fell slightly last week, keeping oil prices confined as forces prevent it from falling under $39 but also from breaching $42 per barrel,” said Patrick De Haan, head of petroleum analysis for GasBuddy.

Nationally, gas prices have fallen by 1.1 cents per gallon in the past week and 3.5 cents compared to a month ago, according to GasBuddy. The average price per gallon is 47.7 cents below where it was at the same time last year.

“As we move into the second week of the August, it is pricing out to be the second cheapest start to the month in more than a decade,” said Jeanette Casselano, spokeswoman for AAA, on the national trend of gas prices.

According to the latest Energy Information Administration weekly report, gas demand fell from 8.8 million barrels per day to 8.6 million.

Recent data from AAA Texas also showed a similar pattern for the state, showing Texans are paying for the least expensive gas since the end of June. That downward trend is expected to continue, said AAA Texas.

“Prices likely won’t spike due to continued COVID-19 concerns and lower demand for gasoline,” said AAA Texas spokesman Daniel Armbruster.

De Haan, of GasBuddy.com, also predicted that gas prices might fall further as the COVID-19 outbreak drags on.

“Traditionally, gasoline demand weakens into the autumn, and as the coronavirus situation keeps more kids home and more parents from work, we may see a drop in gas prices as we progress through fall,” he said.