Columbia average gas price sinks below $4 for 1st time since surge. Will it drop more?
The average cost for a gallon of regular gasoline dropped below $4 on Friday for the first time since jumping to near record levels more than a week ago.
According to AAA South Carolina, the current average in Columbia is $3.99, down from $4.036 on Thursday and $4.12 a week ago. Gas prices edged close to reaching the city’s record average of $4.20 in 2008, but then began slowly but steadily falling on Monday.
Meanwhile, the city’s prices have actually fallen below the state and Richland County averages, which both remain at $4 a gallon on Friday.
AAA states that the national average for a gallon of regular has also continued to decrease since Monday. And according to new data from the Energy Information Administration, total domestic gasoline stocks and demand for gasoline fell in recent days.
The drop in gas demand has contributed to the price drops, but the recent reversal in oil prices has created greater downward pressure on prices. If the oil price continues to decline, pump prices will likely follow suit, AAA states.
The latest spike in fuel prices kicked off in response to Russia’s invasion of Ukraine. However, crude prices have since changed course in reaction to China announcing new lockdowns alongside rising COVID-19 infection rates.
The price of oil has moved lower due to market concerns that crude oil demand will decline, as it did in 2020 when countries sought to curb COVID-19 transmission rates, AAA states.
Additionally, EIA reported that total domestic crude stocks increased by 4.3 million barrels last week to 415.9 million barrels. The recent growth in total domestic crude inventories also contributes to the current reduction in crude prices.
This story was originally published March 18, 2022 at 9:45 AM.
