Gas prices dip as cost of crude oil tumbles

BOISE, Idaho (KIFI) – Idaho gas prices have dipped slightly this week, and the Gem State recently fell out of the Top Ten for most expensive fuel (currently sitting at #11).

Idaho’s average price for a gallon of regular is $3.64 per gallon, which is four cents less than a week ago.  The national average is $3.46 per gallon, which is a penny less than a week ago.

Meanwhile, the cost of crude oil has plummeted by more than 10% this week. The West Texas Intermediate is currently trading near $67 per barrel, which is $9 less than a week ago. Rising concerns about the health of the global banking sector have sent shockwaves through the crude oil market.

“With a handful of banks experiencing serious financial challenges, and ongoing concerns about the possibility of a recession, crude oil prices have dropped this week. Crude oil makes up more than half of the price of finished gasoline, so a sustained run of lower crude costs could eventually translate to lower prices at the pump,” AAA Idaho public affairs director Matthew Conde said. “But keep in mind that the fuel that’s already been bought and paid for by retailers will need to cycle through before there’s a chance that lower crude prices can result in cheaper replacement costs.”

Normally, the slight increase in fuel demand and tighter supplies that took effect this week would send pump prices higher, but lower oil prices held gas prices in check.

You can find the lowest gas prices in the area HERE.