Remember the nightmare of record high gasoline prices one year ago?

One year ago Thursday, the Oklahoma gas price average reached $4.67 per gallon, setting an all-time record high. It’s almost like a bad dream.

But gas prices in the state have dropped 31% since last year, with today’s gas price average sitting at $3.21 per gallon reported AAA.

This year, recession fears due to high inflation, somewhat curbed by ten straight Federal Reserve interest rate hikes, have pushed crude oil prices lower. When the price of crude oil drops, gas prices typically follow, as more than half the cost of a gallon of gasoline is made up of crude oil costs.

Crude oil prices have dropped 40% to 50% since last June when the commodity was trading at about $120 per barrel. By comparison, the price of a barrel of West Texas Intermediate (WTI) crude has been trading in recent weeks in the upper $60s or low $70s per barrel.

There are factors that could push gas prices higher this summer – a hurricane that shuts down major U.S. refineries, war or geopolitical issues elsewhere in the world that could impact crude oil supply, or increased demand for gasoline and other energy sources. But if none of these instances occur, gas prices are not expected to reach the levels they did last summer.

“This time last year, gas prices were above $4.50 in many areas of Oklahoma, causing motorists to adjust driving and spending habits,” said Rylie Mansuetti, spokesperson for AAA Oklahoma.

“Today gas prices are more than $1 per gallon less than this time last year, fueling the return of the Great American Road Trip and what is likely to be the busiest summer travel season we’ve seen in years. If Memorial Day weekend was any indication, significantly lower gas prices are driving travel plans as the summer travel season kicks into high gear.”

CURRENT AND PAST GAS PRICE AVERAGES – June 15, 2023

Regular Unleaded Gasoline (*indicates record high)