Gas prices dip for first time since early May

Nevadans and motorists around the nation witnessed a slight dip in fuel costs this week, the first since gas prices reached record highs in recent weeks, according to AAA.

Gas prices in Nevada have fallen to $5.64 per gallon of unleaded gas after setting a record last week of $5.68 a gallon. However, Nevada still has the second-highest gas prices in the country, with California holding the dubious distinction of highest gas prices at $6.38 per gallon.

On June 11, people across the country witnessed the never-before-seen average U.S. price for a gallon of gasoline reach $5. As of Tuesday, the price had dipped to $4.97 per gallon.

“This is significant in that we haven’t really had any dip until now,” John Treanor, a spokesman for AAA Nevada, said. “Since early May we’ve seen prices either increase or remain stable.”

While the slight dip might provide hope for drivers across the country, this may not indicate a downward trend, Treanor said, noting the busy travel season ahead.

“We’re still seeing a very robust travel forecast coming into summer,” he said. “So demand is likely to remain high. Unless you can increase the supply of oil as well, prices are going to remain high.”

Nevadans have to pay more at the pump because of the state’s reliance on California for refining and transportation of oil. In California, the price of oil refining is higher because of environmental regulations, which are unlikely to change, and that is reflected in the pump prices seen by Nevadans.

The price of crude oil remains “volatile,” according to AAA, with the price per barrel at $115, which keeps prices elevated. The main cause of the lack of oil is the Russian invasion of Ukraine, which led to the U.S. banning all Russian oil imports.

Review-Journal business intern Emerson Drewes can be reached at edrewes@reviewjournal.com or via Twitter @EmersonDrewes.