How Long Will Gas Prices Continue to Drop in Louisiana?
LAFAYETTE, La. (KPEL News) - As you have fought the holiday traffic across Lafayette and parts of Acadiana, there is at least one good thing you have noticed while on the roadways: falling gas prices.
With the roller coaster ride that gas prices have taken us on in 2022, it's a relief for our wallets to see the prices on the decline. Don't forget that six months ago Louisiana's average price for a gallon of regular was $4.56 a gallon, as pointed out by Louisiana Radio Network. In March, Louisiana set a new record as the statewide average for a gallon of regular gasoline was $4.04. It had been since 2008 since the Bayou State saw $4.00 a gallon gas prices. That was back when the U.S. was entering a recession.
Today Louisiana's statewide average is at $2.74 a gallon.
How Cheap Can You Get Gas In Lafayette and Louisiana?
But what about the Bayou State? According to gasbuddy.com, you can get gas as cheap as $2.29 a gallon now in Lafayette and for $2.22 in Lake Charles. Why are gas prices dropping so low again?
Really what’s largely driving the decrease that we’ve seen over the last two months or so no, has been stabilized and lower crude oil prices," said AAA spokesperson Nick Chabbari to Louisiana Radio Network.
Remember the Russian invasion of Ukraine? It's still happening but the disruption in the global oil supply that it caused has stabilized. But don't forget about them because we will come back to them shortly.
What Is OPEC Doing?
Experts say, barring any other disruptions, they expect the prices to continue to drop. But, as this article from Fox Business warns, watch what OPEC is doing. The Organization of the Petroleum Exporting Countries and allies' (OPEC+) are keeping oil production output down by 2 million barrels per day.
Gas prices are dropping sharply and are only a nickel more per gallon than a year ago," AAA spokesperson Andrew Gross said to Fox Business, who points out the national average is $3.40 a gallon. "But with oil being the main ingredient in gasoline, OPEC+'s move could slow this decline."
Back To Russia
While OPEC is playing with it's oil production, the European Union, Australia, Japan, the United States, Canada and the U.K. agreed to take some action of their own, launching a $60 per barrel price cap on Russian crude oil. Yes, this could hurt Russia's profits following their invasion of Ukraine but a Russian retaliation could drive up our gas prices again.
Think of these lowering gas prices as a Christmas gift because once the new year starts, who knows what to expect.