Gas prices stood at $4.29 a gallon in Rio Rancho a few months back. (Garrison Wells/Observer)

 

 

  • The lowest Rio Rancho price July 6 at 9 a.m. was $4.080 at Speedway, 3601 Pat D’Arco Hwy, according to Gasbuddy.com on the Observer web site.
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New Mexico gas prices continue to decline slightly, but AAA says there might be a price u-turn coming.

The average price for a gallon of regular unleaded gasoline statewide on July 6 was $4.598, a drop from $4.615 the day before. A week ago, AAA New Mexico says, the price was $4.690 and a year ago it was $3.088.

Mid-grade July 6 was $4.928, while premium was at $5.210 and diesel was $5.512.

However, AAA New Mexico points out that this is likely just a temporarily slide, screeching to a halt once the summer driving season wraps up.

“Domestic gasoline demand dipped recently, which took some of the pressure off of pump prices. About 80% of stations are now selling regular for under $5 a gallon,” said Andrew Gross, AAA spokesperson, in a news release. “But July is typically the heaviest month for demand as more Americans hit the road, so this trend of easing prices could be short-lived.”

According to the latest Energy Information Administration (EIA) data, gas demand currently sits at 8.93 million b/d, which is lower than last year’s rate of 9.11 million b/d at the end of June. On the other hand, total domestic gasoline stocks increased by 2.6 million bbl to 221.6 million bbl. These supply/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.

Today’s national average of $4.80 is four cents less than a month ago and $1.67 more than a year ago.