AAA: July 4 gas prices below $2 mark in Texas for first time since 2004

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By Talk 1370

AUSTIN ( -- Average gas prices across the state will remain below the $2/gallon mark for the July 4th holiday weekend for the first time in 16 years, according to the AAA Texas Weekend Gas Watch.

The average price for a gallon of regular unleaded fuel in Austin this week is $1.90, up one cent from last week and down 50 cents from this time last year. Across the state, drivers are paying an average of $1.89 a gallon, which is the same as last week and 55 cents cheaper than a year ago.

Drivers in Midland and Odessa are seeing the state's highest averages, at $1.99/gallon, while drivers in Sherman-Denison are paying the least at $1.79/gallon.

Across the country, the nationwide average is $2.18/gallon, up one cent from last week and 55 cents cheaper than last year.

According to AAA's Daniel Armbruster, the last time Texas gas prices were below the $2 mark on Independence Day was in 2004. "Demand for gasoline has been fluctuating and took a slight drop this week," Armbruster said, "causing pump price increases to slow heading into the holiday weekend."

According to new data from the Energy Information Administration (EIA), gas demand took a slight step back to 8.56 million barrels per day from 8.61 million barrels per day last week. Alongside decreasing demand, total domestic gasoline supplies grew by 1.2 million barrels to 256.5 million last week. The statewide average holding steady means that gasoline supply and demand are largely in sync across Texas. If these trends continue, drivers could see pump price increases slow or hold steady through the holiday weekend.