Brexit leads to lower fuel prices

Prices expected to dip further

(Ferre Dollar/CNN)

TAMPA, Fla. – Britain's vote to leave the European Union could impact Americans in a variety of ways; one of them could be lower gas prices. The price for crude oil, which is globally traded on the stock market, declined by nearly $2.50 the day after the "Brexit" vote. Since two-thirds the price of gasoline is influenced by oil prices, this reduces the likelihood of gas prices rising in the near future.  

"Gas prices were already falling before the 'Brexit' vote, but reductions in the price of oil should allow that trend to continue," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Increased gasoline demand is currently being offset by healthy refinery production, and gas prices are expected to remain at their lowest point for this time of year since 2005."

The average price for a gallon of gasoline is $2.31 nationwide, $2.27 in Florida, $2.18 in Georgia, and $2.10 in Tennessee. Compared to last week, average prices are down 3 cents nationwide and in Florida, 4 cents in Tennessee, and 6 cents in Georgia. Motorists are saving nearly 50 cents on a gallon of gas compared to last year, and $1.40 compared to two years ago. 

Average gas prices have declined for 19 consecutive days in Florida and Georgia for a total of 8 and 10 cents respectively. In Tennessee, the average price has declined for 18 consecutive days at a total discount of 10 cents. 

After declining a week ago, crude oil prices began to recover during the week until the Brexit vote sent them back down. WTI settled at $47.64 a barrel Friday on the NYMEX. That's $2.47 less than the day before, and 36 cents less than a week ago. 

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