As summer travel enters its peak, there’s good news for travelers. Pump prices declined again, with the national gas price average for unleaded falling another 12 cents since last week to $4.67. The dip in the national average occurred despite a slight rise in demand. That jump in demand was likely due to robust July 4th holiday vehicle travel with a record number of travelers—42 million—predicted to hit the roads for the holiday weekend earlier this month.
“Usually, more people buying gas would lead to higher pump prices,” said Lori Weaver Hawkins, public affairs manager for AAA Blue Grass. “But the price for oil, the main ingredient in gasoline, has continued to fall, and is hovering around $100 a barrel. Less expensive oil usually means less expensive gas, and that’s what we’re seeing right now, despite the increase in demand.”
Weaver Hawkins points out that oil prices have dropped about $20 a barrel since mid-June.
According to new data from the Energy Information Administration (EIA), gas demand increased from 8.92 million barrels a day to 9.41 million barrels a day ahead of the 4th of July holiday, while total domestic gas stocks decreased by 2.5 million barrels. As noted in earlier reports, increased demand and decreased supply normally put upward pressure on what consumers pay at the pump. However, falling oil prices are having a greater impact, at least currently, putting downward pressure on pump prices.
Today’s national average of $4.67 is 32 cents less than a month ago, but $1.53 more than a year ago.
Kentucky’s gas price average is now at $4.37, which is 15 cents lower on the week, tying for the fourth largest drop in the week across the nation. Today’s price is 42 cents lower on the month, but still $1.44 higher than a year ago.
Gas prices in Lexington are averaging $4.49, which is 9 cents lower on the week and 29 cents lower on the month. The average price in Lexington a year ago was $2.94.
The average gas price in Ashland is now $4.69. That’s 4 cents lower than a week ago and 11 cents higher than a month ago. The average price for Ashland a year ago was $2.98.
Lee County has the highest average gas price in Kentucky at $4.77, followed by Magoffin County averaging $4.75. Lowest averages in the commonwealth can be found in Knox County at $3.93, with Simpson County ($3.96) and Hickman County ($3.99) also now under the $4 mark.
For those planning to travel around the region, the average price for a gallon of unleaded today in Ohio is $4.57, West Virginia $4.69, Virginia $4.46, Tennessee $4.28, Indiana $4.73, Illinois $5.14 and Missouri $4.40.
Travelers planning a road trip to the west and southwest U.S. can expect to see considerably higher gas prices, while those planning a road trip to the southern region of the country will enjoy the lowest prices at the pump.
The highest spot in the nation remains California, still over that $6 mark despite some dramatic drops, now at $6.08, followed by Hawaii at $5.41. Nevada and Oregon follow at $5.39.
Georgia, South Carolina and Mississippi all tie for the lowest gas price average in the nation today, currently at $4.18 across the board.
The nation’s top 10 largest weekly decreases: Texas (−18 cents), Ohio (−17 cents), Illinois (−17 cents), California (−16 cents), Wisconsin (−15 cents), Indiana (−15 cents), Kentucky (−15 cents), Alabama (−15 cents), Virginia (−14 cents) and Florida (−14 cents).
The nation’s top 10 least expensive markets: South Carolina ($4.18), Georgia ($4.18), Mississippi ($4.18), Louisiana ($4.22), Texas ($4.22), Alabama ($4.25), Arkansas ($4.26), Tennessee ($4.28), North Carolina ($4.31) and Kentucky ($4.37)
At the close of Friday’s formal trading session, West Texas Intermediate increased by $2.06 to settle at $104.79. Although the price of crude rose at the end of the week due to increased market optimism as markets rebounded, the price was still down nearly $4 per barrel from the previous week. For this week, crude prices could continue to face strong headwinds if the market remains concerned that a potential recession will reduce demand for crude. If demand declines, crude prices will likely follow suit. Additionally, EIA reported that total domestic crude stocks increased by 8.2 million barrels to 423.8 million barrels, which is nearly 22 million barrels lower than the storage level one year ago.
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