The national average for a gallon of gasoline has fallen to $4.80, down 8 cents over the past week. The biggest factor reducing pain at the pump is fewer people fueling up over the past two weeks leading up to Independence Day weekend. The lull, however, could be short-lived as July brings the peak of summer travel.
“Domestic gasoline demand dipped recently, which took some of the pressure off of pump prices. About 80% of stations are now selling regular for under $5 a gallon,” said Lori Weaver Hawkins, public and government affairs manager, AAA Blue Grass.
But Weaver Hawkins is quick to point out that July is typically the heaviest month for demand as more Americans hit the road.
“With July bringing the height of summer travel, this trend of easing prices could, unfortunately, be short-lived, especially if day-to-day demand picks back up as well, now that prices are below record levels,” she says. “Of course, the other factor is oil prices, which have decreased recently as well. Lower demand and continued lower oil prices are the formula for maintaining downward pressure on gas prices.”
According to the latest available Energy Information Administration (EIA) data, gas demand currently sits at 8.93 million barrels a day, which is lower than last year’s rate of 9.11 million barrels per day at the end of June. On the other hand, total domestic gasoline stocks increased by 2.6 million barrels to 221.6 million barrels. These supply/demand dynamics, along with decreasing oil prices, have pushed pump prices lower.
Today’s national average of $4.80 is 4 cents less than a month ago and $1.67 more than a year ago.
Kentucky’s gas price average is now at $4.59, which is 9 cents lower on the week and 14 cents lower on the month. Today’s price is still $1.58 higher than a year ago. Gas prices in Lexington are averaging $4.57, which is 8 cents lower on the week and a penny lower on the month. The average gas price in Ashland is now $4.74. That’s 3 cents lower than a week ago, but still 13 cents higher than a month ago.
Pendleton County has the highest average gas price in Kentucky at $4.85, followed by Kenton County averaging $4.81. Lowest averages in the Commonwealth can be found in Fulton County at $4.06, followed by Simpson County at $4.07.
Checking nearby, the average price for a gallon of unleaded today in Ohio is $4.72, West Virginia $4.77, Virginia $4.59, Tennessee $4.41, Indiana $4.87, Illinois $5.29 and Missouri $4.51.
The highest spot in the nation is California, now down to $6.23, followed by Hawaii at $5.61. The lowest gas price average in the nation can be found in South Carolina, currently at $4.29, followed by Georgia at $4.30.
The nation’s top 10 largest weekly decreases: Texas (−13 cents), Delaware (−13 cents), Arizona (−12 cents), Illinois (−12 cents), Indiana (−12 cents), Ohio (−12 cents), South Carolina (−11 cents), Florida (−11 cents), Virginia (−11 cents) and Maryland (−10 cents).
The nation’s top 10 least expensive markets: South Carolina ($4.29), Georgia ($4.30), Mississippi ($4.31), Louisiana ($4.35), Arkansas ($4.35), Texas ($4.39), Alabama ($4.39), Tennessee ($4.41), North Carolina ($4.43) and Oklahoma ($4.50).
At the close of last week’s formal trading session, West Texas Intermediate increased by $2.67 to settle at $108.43. The price of crude increased at the end of last week due to market optimism that demand will remain robust throughout the summer. However, crude prices faced strong resistance amid broad market concern regarding the potential for economic growth to slow or stall due to rising interest rates and inflation, which could send prices lower this week if market concerns persist. A lower-than-expected economic growth rate could cause crude demand to decline, leading prices to follow suit. Additionally, EIA reported that total domestic crude stocks decreased by 2.7 million bbl to 415.6 million bbl last week, which is nearly 37 million bbl lower than at the end of June 2021.
AAA Blue Grass