Pittsburgh seeing higher gas prices than state average
PITTSBURGH (KDKA) - Gas prices are slowly trickling down as oil prices drop, but for how long will it last, and why are the prices dropping slower in the Pittsburgh area than in other parts of the state?
According to AAA, our area usually sees higher prices because of location. In the Pittsburgh area, we are not as close to oil refineries. AAA said most of our gas comes from out of the region.
"When you think about that supply chain, how long does it take the gasoline to get where it needs to go?" AAA East Central Director of Public Affairs Jim Garrity said.
Right now, our region has some of the highest prices in the state. The national average is $4.80, the state is $4.88 and Pittsburgh is $4.94, down from $4.99 last week. Some of the drop is attributed to people driving less.
"I believe that a lot of the reflection we see in the demand has been because of the high gas prices," Garrity said over Zoom.
The next question: how long will prices continue to go down? Some of that depends on what happens in Ukraine. According to economists, it made gas jump at least 25 cents a gallon.
"This had a tremendous impact on the economies around the world," Duquesne University Associate Dean of Academic Systems and Accreditation Dr. Risa Kumazawa, an economist, said.
That will play a bigger role in dropping the price than just people not driving as much.
"Everything else, it's not going to be this dynamic drop," Dr. Kumazawa said.
Then there's crude oil. It dropped below $100 a barrel, but it's been a rollercoaster, and it makes up 50 to 60 cents for each dollar you spend.
"That's not been something that's uncommon in the last couple months," Garrity said.
So right now, it's hard to know what will happen next with prices. July is a busy travel time, and when people travel, prices usually go up.
There's also the concern if people are not buying gas, it could be a sign of a recession. The hope is prices will go back to "normal," but it's dependent on what happens in Ukraine.