It’s taken several weeks, but gas prices in Dodge City have dropped back below $2 a gallon.
As of Tuesday afternoon, Murphy USA, Kwik Shops, Dillons, Flying J and Love’s were all listing a gallon of regular unleaded at $1.98.
The average price in Kansas, according to GasBuddy.com and AAA Kansas, is $2.16 a gallon, which is 2 cents cheaper than a week ago.
"For the 22nd straight day, the national average for a gallon of gasoline has dropped, the longest such streak since last summer," said Patrick DeHaan, senior petroleum analyst for GasBuddy.com. "Average prices now stand at their lowest thus far in 2017 and the lowest since before Christmas, thanks primarily to weak demand for gasoline and also bulging inventories of gasoline.
"Soaking weather on the west coast has certainly dampened motorists appetite for gasoline, while in the midwest, weak demand has led to a surplus of winter gasoline, leading some stations in the region to offer the nation’s lowest price — $1.52 can be found at a gas station in Oxford, Ohio.
But before motorists celebrate such cheap gas, the sweet deal likely won’t stick much longer as we’ve been waiting since last week to see such loss-leaders to disappear. However, we may continue to see the national average moderate during the next week, with the exception in the Great Lakes- where a price adjustment of sorts is still expected."
According to AAA Kansas, the average price of unleaded in Cimarron has fallen to $1.97 a gallon. The travel group also attributes the decrease in prices to increased oil production in the US.
According to AAA Kansas’s weekly gas report, continual growth in the number of US oil rigs and the increased drilling it implies are raising expectations for a climb in domestic oil production. Additionally, increased US crude oil production coupled with lower driving demand has kept downward pressure on the national average price at the pump, which has fallen for 21 consecutive days. Today’s national average price for regular unleaded gasoline is $2.27 per gallon, down 4 cents versus one week ago, 5 cents less than one month ago, but 47 cents more per gallon year-over-year.
According to a Reuters survey, the Organization of the Petroleum Exporting Countries in January achieved 82 percent compliance with its promised production cuts, well above most market forecasts.
However, according to a Reuters story on Tuesday, despite an initial rise on hopes that markets would rebalance quickly, Brent and US crude futures have been pressured by evidence of higher US oil drilling and forecasts of a rebound in shale production. US shale output is slowly increasing, helping keep a lid on oil prices.
US oil production has risen 6.3 percent since July of last year according to data from the US Energy Information Administration.
While gas prices in, and around, Dodge City have fallen below $2 a gallon, there are cheaper locations in the state. A Sunshine station in Coffeyville and a Phillips 66 station in Garden City are both selling gas at $1.93 a gallon. Other locations in both communities are listing at $1.95 a gallon.
The largest price per gallon in Kansas is in Goldwater, where King’s Corner is listing a gallon or regular unleaded at $2.33 a gallon. A Cenex station in Sharon Springs are second-highest with gas selling for $2.30 a gallon.