FRANKFORT, Ky. — Gas prices continue trending downward and the national average cost for a gallon of regular was $3.92 as of Thursday, according to AAA.
Lawmakers in Frankfort heard from industry representatives about the recent price trends at the pump this week.
What You Need To Know
- Kentucky lawmakers met with reps from the oil and gas industry Thursday
- It was a part of a discussion on gas prices in a joint committee on natural resources and energy
- AAA says the national average cost for a gallon of regular was $3.93 as of Thursday
Kentucky lawmakers say they’ve been hearing from constituents about the higher than normal prices this summer.
“Any time we get that much concern from our district, obviously we want to get to the bottom of it,” said Sen. Brandon Smith (R, Hazard).
On Thursday afternoon, a joint committee on natural resources and energy received a presentation from the American Petroleum Institute and others in the industry.
“Over 85% of the change that consumers are seeing in the price at the pump is related directly to… it’s the pulse of just crude oil prices globally having gone up. And keep in mind, these are global markets,” said Dean Foreman, chief economist for the American Petroleum Institute. “It’s a globally traded commodity.”
Leah Taylor with Cumberland Lake Shell, Inc. told lawmakers that retailers have been affected by labor costs, freight charges and equipment prices, among other factors.
“When fuel taxes increase on state or federal levels, they have to be passed on to the customer, but for the most part, they are not aware that the taxes have increased and they just think that it’s additional profit to us, when it’s not,” she said.
According to the American Petroleum Institute, gas prices in Kentucky averaged 29 cents per gallon below the U.S. average last year during the first half of this year.
While gas prices have gone down some, Rep. Jim Gooch Jr. (R, Providence) said Kentuckians are still paying too much.
“We’ve got to make sure that people are going to be able to heat their homes and be able to drive to work and it’s not happening right now,” he said Thursday.