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Gas prices are down slightly, but will it last?

Gas
Posted at 4:53 PM, Jun 28, 2022
and last updated 2022-06-28 22:55:35-04

PHOENIX — If you drive around the Valley, you probably noticed gas prices are down slightly.

About two weeks ago the average price of a gallon of regular in Phoenix hit a peak at over $5.70, over $2 higher than where prices started at the beginning of the year. In the last few weeks, prices have eased up.

According to Gas Buddy, the average price of regular in Phoenix is about $5.55, down 2.2% from last week. Tucson averages $4.90, down 1.9%. Meanwhile, the state’s northern metro, Flagstaff, averages $4.97, down less than 1%.

Gas prices in the three main metro regions in Arizona have been tightly packed together for most of 2022. That changed in May when Phoenix area stations started to rise independently. That also means Phoenix stations have fallen the most.

The gap between the metros is still significant. Tucson consumers are paying 64 cents less than people in Phoenix. In Flagstaff, a gallon is averaging about 57 cents less. It’s among the widest daily gaps since 2017. Earlier this month Tucson gas was almost 90 cents less than Phoenix.

Will the break in prices continue? The answer is, probably not.

For gas prices to fall, oil prices would need to come down first. The relationship between gas prices and the price of a barrel of oil is incredibly strong. Oil is still trading well over $100 a barrel and near its peak of $124. The spot price has been increasing since may so unless oil begins to fall enjoy the break in prices, but it’s probably temporary.