-December 12,2023-
Reduced demand and ample supply of domestically produced oil has increased the supply of gasoline and diesel resulting in the lowest prices for fuel in 30 months across the US.
In Kings County the cheapest gas is being sold at Yokut Gas for $3.65 a gallon, one of the lowest price in the state.The Visalia Costco is selling regular for $3.99 this week.
Nationwide fuel costs are dropping says oil expert Tom Kloza
“Virtual certainty this weekend will see the lowest US gasoline prices in 30 months. Current gasoline average is $3.137/gal and a 5cts/gal drop will lead to the lowest gas prices since the second half of June 2021. Diesel disinflation also major with sub-$4/gal average likely.”
The national average diesel price dropped below $4 a gallon for the first time in nearly five months after shedding 10.5 cents to $3.987, according to the Energy Information Administration data released Dec. 11.
Meanwhile a warm winter looks to decrease demand for natural gas as the national market price is down below $2.50 per million BTU.
Graphic from Wall St Journal
In southern California SO Cal Gas is selling Natural gas to heat homes and produce electricity at $5.60 per M BTU this month- likely heading lower in January.Compared to a year ago, the procurement rate is about 47.0% lower (105.329 ¢/therm) than what it was effective December 2022.
All these collapsing, energy costs are helping to reduce inflation, say, economists making it less expensive to grow vegetables, apply fertilizer, and reducing the cost of bringing goods to your community.The annual inflation rate is now 3.1% compared to 6.5% for 2022.
