The national average for a gallon of gas slowed its rapid rise but remains 3 cents higher than a week ago. Meanwhile, oil prices fell to just under $80/bbl and the demand of the summer travel season is winding down.
While those two factors, as well as the upcoming switch to winter blend, would normally spell lower gas prices, that’s not necessarily going to be the case. The potential for hurricane development across oil-producing regions of the U.S. and forecasts for an expanding heat dome over Texas, Oklahoma, and Kansas next week could push oil prices higher. Refineries in these states may have to curb production to deal with the sizzling temperatures.
The other wild card? Oil prices rose this summer due to production cuts by OPEC+, which could last till at least September and maybe longer.
“Unfortunately, the widespread heat is returning, and we are also entering the height of hurricane season,” said Lori Weaver Hawkins, public affairs manager, AAA Blue Grass. “While fewer drivers are fueling up for road trips this time of year, these looming weather concerns are a roadblock to falling pump prices. Gas Prices may keep waffling as we get into the fall season.”
According to new data from the Energy Information Administration (EIA), gas demand slid from 9.30 to 8.85 million b/d last week. Meanwhile, total domestic gasoline stocks slightly decreased from 216.4 to 216.2 million bbl. Although demand has fallen, fluctuating oil prices have kept pump prices elevated.
Today’s national average of $3.87 is 31 cents more than a month ago but still 6 cents less than a year ago.
Kentucky’s average for a gallon of regular gasoline is down a penny overnight to $3.57, which is 5 cents higher on the week, 31 cents higher than a month ago and 4 cents higher than a year ago. Kentucky now has the 8th cheapest gas in the nation.
The average gas price in Lexington also fell a penny overnight, now averaging $3.55. Lexington’s current gas price average is steady on the week, but still 25 cents higher than a month ago. Today’s price in Lexington is still 8 cents lower than a year ago.
Around the Commonwealth, the highest county-level average gas price can be found in Jefferson County, the only county at the $4 mark. The cheapest county-wide average price of gasoline in the commonwealth can be found in Bell County at $3.26.
At the close of Thursday’s formal trading session, WTI crude oil settled at $79.90, at $2.90 less per barrel than the previous Thursday. Oil prices tumbled mid-week amid ongoing concern that if interest rates continue to increase, the economy could tip into a recession. If it does, oil demand and prices would likely decline. However, some analysts point out that despite predictions of a recession, global demand has remained robust. Additionally, the EIA reported that total domestic commercial crude inventories decreased from 445.6 to 439.7 million bbl.
Gas prices around the region and nation
Checking elsewhere, the average price for a gallon of regular today in Ohio is at $3.60, West Virginia $3.69, Virginia $3.67, Indiana $3.90, Tennessee $3.49, Illinois $4.16 and Missouri $3.58.
The highest gasoline average price in the country is California at $5.19, which is 30 cents more than a month ago, while Mississippi has the lowest average gas price, still at $3.33.
Quick Stats
The nation’s top 10 least expensive markets: Mississippi ($3.33), Louisiana ($3.42), Alabama ($3.45), Arkansas ($3.47), South Carolina ($3.47), Texas ($3.49), Tennessee ($3.49), Kentucky ($3.57), Missouri ($3.58), and Ohio ($3.60). The nation’s top 10 most expensive markets: California ($5.19), Washington ($5.03), Hawaii ($4.79), Oregon ($4.70), Alaska ($4.50), Nevada ($4.43), Utah ($4.23), Arizona ($4.21), Illinois ($4.16) and Idaho ($4.11).
AAA gas-saving tips for summer travel
• Get your vehicle checked out. Perform regular car maintenance at the intervals recommended by the vehicle manufacturer in the owner’s manual or as indicated by the in-car maintenance reminder system. If you have an aging battery, be sure to have it tested before heading out on your trip.
Keep tires properly inflated. Under-inflated tires can decrease your gas mileage by approximately 3%. Not to mention, properly inflated tires are safer and last longer. Check pressure in all four tires every two weeks with an accurate, hand-held air pressure gauge.
Know your octane. Do not purchase mid-grade or premium gasoline unless your owner’s manual specifically recommends it. According to AAA research, Americans waste more than $2.1 billion annually on premium gas in vehicles designed to run on regular fuel. AAA found no benefit to using premium gas instead of regular-grade fuel. At the time of the study, 70% of U.S. drivers owned a vehicle that required only regular gasoline.
Avoid idling. Idling gets zero miles per gallon. Letting your vehicle idle for more than 10 seconds uses more gas than shutting it off and restarting. Don’t start your car until you are ready to go. The engine actually warms up more quickly once the car is operating, and will stay warm after stopping. Avoid drive-up windows. Park and go inside instead.
Observe the speed limit. Gas mileage decreases rapidly at speeds above 60 mph. Each 5 mph you drive over 60 mph is like paying an additional $0.15 per gallon of gas. Using cruise control on the highway helps you maintain a constant speed and, in most cases, will save gas.
Drive sensibly. Aggressive driving (speeding, rapid acceleration and braking) wastes gas. It can lower your gas mileage by 33 percent at highway speeds and by 5 percent around town.
Plan your trip. Carefully planning out your road trip can save you time and money. AAA offers a multitude of AAA road trip planning resources. With a little planning, you can avoid retracing your route and reduce the distance you travel as well. You’ll not only save fuel, but also reduce wear and tear on your car.
Minimize drag. Drag reduces fuel efficiency. Driving with the windows open, using roof- or rear-mounted racks and carrying heavy loads increase vehicle drag. A roof rack or carrier provides additional cargo space and may allow you to meet your needs in a smaller, more fuel-efficient car. However, a loaded roof rack can decrease your fuel economy by 5 percent. Reduce aerodynamic drag and improve your fuel economy by using a removable rack and placing items inside the trunk whenever possible. Avoid carrying unnecessary items, especially heavy ones. An extra 100 pounds in the trunk reduces a typical car’s fuel economy by 1-2%.