The national average for a gallon of regular gasoline fell by 4 cents to land at $4.14 this week. According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 2 million barrels to 236.8 million barrels last week. Gasoline demand increased slightly from 8.5 million barrels/day to 8.56 million barrels/day.
Although typically, supply and demand factors would have supported elevated pump prices, the fluctuating price of oil continues to be the main factor influencing pump prices. Pump prices will likely face downward pressure if oil prices remain below $100 per barrel.
At the close of Thursday’s formal trading session, WTI dropped another 20 cents to settle at $96.03. This followed a significant fall of $5.73 the previous day.
Crude prices decreased after EIA’s weekly report revealed that total domestic crude stocks increased last week by 2.5 million barrels to 412.4 million barrels, approximately 17 percent lower than the beginning of April 2021. Additionally, crude prices faced more downward pressure this week after the International Energy Agency’s (IEA) 31 member countries, including Mexico, Japan, Germany, and Canada, announced plans to release 120 million barrels of crude oil from their emergency oil stockpiles. The amount includes a previously announced 60 million barrels of oil from the U.S.
It would be the second coordinated release in just over a month in response to spiking oil prices after Russia invaded Ukraine. While the IEA said more details about the release would become available soon, including the release timeline, the announcement has helped ease some supply concerns, pushing crude prices lower.
Today, the national average for a gallon of regular unleaded sits at $4.14. That’s a penny lower than yesterday, 8 cents lower than a week ago and 3 cents lower than than a month ago, but $1.27 higher than prices a year ago at this time.
Today’s average in Kentucky sits at $3.89, a penny lower than yesterday and 6 cents less than a week ago.
Today’s average is 4 cents less than a month ago, but $1.17 more than last year at this time.
Checking nearby, the average price for a gallon of unleaded today in Ohio is at $3.89, West Virginia $4.06, Virginia $4.08, Tennessee $3.92, Indiana $4.02, Illinois $4.38 and Missouri $3.70.
AAA offers the following advice to help drivers save 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 this time of year, 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%. Surpassing the posted speed limit is not only against the law and increases the risk of crash severity, but also reduces your gas mileage
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• 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. Remember, idling gets you 0 miles to the gallon.
• Use “fast pass” or “express” toll lanes to avoid unnecessary stops or slowdowns on the highway.
• Only use premium gas 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.
AAA