The national average for a gallon of regular gasoline dropped 2 cents last week before climbing back up a penny to land at $4.24 going into the weekend. A similar story unfolded for the average price at the pump in Kentucky.
A drop in gas demand — likely due to reduced drive time in the face of higher prices — has been contributing to price decreases. However, the steady increase in the price of oil is hampering that decline. If oil prices continue to rise, pump prices will likely follow suit, reversing course from the current downward trend. At the close of Wednesday’s formal trading session, WTI had increased by $5.66 to settle at $114.93. At end of the day Friday, the WTI opened at $111.75 and ranged from $108.68 to $114.12 for the day.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks fell by 3 million barrels to 238 million barrels last week. Gasoline demand also decreased from 8.94 million barrels a day to 8.63 million barrels a day.
Crude prices climbed after EIA’s weekly report revealed that total domestic crude stocks declined last week by 2.5 million barrels to 413.4 million barrels, approximately 18 percent lower than the level in mid-March 2021. The current inventory level highlights tightness in the market, contributing to rising prices.
Additionally, earlier this week, the Caspian Pipeline Consortium said that it could reduce crude exports by as much as 1 million barrels per day due to storm damage, according to news reports. The pipeline carries oil from Russia and Kazakhstan to buyers in the global market via the Black Sea. While Russian oil is generally being shunned by the global market due to sanctions, loss of barrels from Kazakhstan could further strain already tight markets. News of the potential reduction in supply has contributed to increased crude prices this week.
The national average for a gallon of regular unleaded was at $4.24 on Friday. That’s steady since Thursday and 3 cents lower than a week ago, but still 67 cents higher than a month ago and $1.37 more than prices a year ago at this time.
Today’s average in Kentucky sits at $3.98, a penny less than yesterday and a penny less than a week ago. Today’s average in Kentucky is 76 cents more than a month ago and $1.27 more than last year at this time.
AAA offers the following advice to help drivers ease some of the pain they’re feeling at the pump:
• Keep your vehicle in top shape with routine inspections. Make sure your tires are properly inflated. Underinflated tires are a drag on fuel economy. Check tire pressure at least every other week and more often when temperatures are fluctuating.
• Map your route before you go to minimize unnecessary turnarounds and backtracking. Avoid peak traffic times and if possible go to “one-stop shops” where you can do multiple tasks (banking, shopping, etc.).
• Fuel economy peaks at around 50 mph on most cars, then drops off as speeds increase. Reducing highway speeds by 5 to 10 mph can increase fuel economy by as much as 14%.
• A car engine consumes one quarter to one-half gallon of fuel per hour when idling, but a warm engine only takes around 10 seconds worth of fuel to restart. Where safe to do so, shut off your engine if you will be stopped for more than a minute.
• Use “fast pass” or “express” toll lanes to avoid unnecessary stops or slowdowns on the highway.
• Use premium gas only in vehicles that recommend or require it. Paying for premium gas for a vehicle that takes regular is a waste of money and is of no benefit to the vehicle.