Average gas prices in South Dakota continue to fall
SIOUX FALLS, S.D. (Dakota News Now) - Average gas prices in South Dakota counties now range anywhere from under four dollars a gallon, to well over five according to AAA. Across the state though prices are falling, due to changing demand and more supply on the market.
On average, South Dakotans are paying $4.23 for a gallon of gas, well short of the record set last month at $4.79 according to AAA. Minnesotans are paying $4.20 on average, while prices in Iowa average at $3.94.
AAA spokesperson Shawn Steward said the drop in crude oil prices is the biggest factor in lowering prices, with more supply on the market.
“The biggest thing is crude oil prices have seen a significant drop. Back in June, we were looking at prices of $130 a barrel, or almost at that level. Now were back, and we’ve recently been at under $100 a barrel.” Steward said.
That drop also due to less demand for gas in July, as high prices forced some to look to other ways to get around.
“When prices get high at the pump, some people will change their plans. They may drive less, they may postpone a driving trip for example.” Steward said.
Steward said just because prices are coming down doesn’t mean they can’t spike back up. He says a number of long-term factors could raise prices, as well as short-term ones like weather.
“We could see another spike for sure, they can happen at any time as we saw with the situation with Ukraine and Russia. Big issues globally that have an impact on supply can put a lot of uncertainty and fear in the crude oil market, and drive those prices up,” Steward said. “There’s a lot of refineries in the Gulf Coast that are easily impacted by hurricanes. If something were to hit those facilities and take some refineries off line, that could have an impact.”
Steward said these price swings aren’t necessarily the new norm when it comes to buying gas down the road. He says with the world’s supply being so connected, it’s hard to say what could happen next and what could affect future prices.
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