Charlotte gas prices are seeing a dip. Pre-Iran war numbers will take some time.
Gas prices across North Carolina have continued to decline after the U.S. announced a tentative agreement with Iran to end the war, but it could take several months for drivers to see pre-war prices.
Gas prices in the Charlotte region saw a slight dip over the past week as the national average for a gallon has continued to fall over the past month, according to AAA.
Drivers are paying an average of $3.66 per gallon in Mecklenburg County as of Tuesday. That’s down 13 cents from last week and 57 cents from just a month ago. But still remains over 70 cents more than it was this time last year.
The decrease in prices also came as President Donald Trump announced a framework deal with Iran to reopen the Strait of Hormuz and extend an unsteady ceasefire. The critical waterway sees the passage of about 20% of the world’s oil supply.
The price of Brent crude, the global benchmark for oil, has fallen to around $80 a barrel, the lowest level since early March, according to GasBuddy analyst Patrick De Haan.
“That certainly could bring with it lower gasoline prices in the weeks ahead,” he said.
De Haan said prices were already starting to dip after President Trump shifted his tone from aggression to seeking a deal over a month ago. It led to prices declining as markets anticipated the deal to come
“The market does not wait for information that it knows is going to happen,” De Haan said. “Oil prices already declined significantly yesterday and those declines will likely continue over the next week.”
Slow to return to normal
But while prices have declined, it could be a slow burn for drivers to see them return to pre-war levels, De Haan warned. The Department of Energy says the Strategic Petroleum Reserve has fallen to its lowest levels since the 1980s. That could put America at risk in the months to come, especially if the current deal between the U.S. and Iran falls apart, according to De Haan.
The closure of the Strait also led to global inventories taking a significant hit. De Haan said it’s going to take six months to a year for global inventories to fully recover after the Strait has been reopened. And prices within America could follow a similar timeline.
“I don’t expect prices to return to their pre-war levels potentially until maybe late this year, November or December at best,” De Haan said. “But more likely it will take until 2027 to see a return to pre-war prices.”
Where to find cheap gas in Charlotte
Drivers can use several apps to save money on fuel and locate cheaper prices. Waze can be used to find lower gas prices, but the app relies on users to report prices. GasBuddy also tracks lower gas prices in the area, and provides a list of stations that can be sorted by price, distance or both.
Moving forward, De Haan said the peak of hurricane season is another factor to watch that could impact fuel prices in the coming weeks. Any major storm could potentially impact Gulf Coast refineries, tighten fuel supplies and push prices higher.
But developments in the Middle East will remain the largest factor as summer travel for many is well underway.
“If there is some sort of escalation or if the deal does fall apart there is the distinct possibility that gas prices could eventually go right back up,” De Haan said.
