A year ago this week, motorists in Kentucky and across the nation were facing historically high prices at the pumps. On June 11, 2022, the Kentucky gas price average reached $4.79 per gallon, setting an all-time record high. On June 14, 2022, the national average gas price set an all-time record of $5.01 per gallon.
“This time last year, gas prices were above $5.00 in many areas, causing motorists to adjust driving and spending habits,” says Lori Weaver Hawkins, public affairs manager, AAA Blue Grass. “Today gas prices are well over $1 per gallon less than this time last year, fueling the return of the Great American Road Trip and what is likely to be the busiest summer travel season we’ve seen in years. If Memorial Day weekend was any indication, significantly lower gas prices are driving travel plans as the summer travel season kicks into high gear.”
The last few weeks have seen gasoline demand rise, ahead of the summer travel season. Despite greater demand, pump prices have remained fairly constant as lower-cost oil continues to counter any expected spike in pump prices, at least for now.
“As we mark a year since we saw pump prices skyrocket to record highs, the expected seasonal surge in driving seems to have arrived a bit ahead of the official start of summer,” says Weaver Hawkins. “But, the lower cost of oil has mitigated any big jumps in pump prices, which is good news for drivers, with so many planning to embark on a summer road trip.”
According to the latest available data from the Energy Information Administration (EIA), gas demand increased slightly from 9.1 to 9.22 million b/d to start off the month. Meanwhile, total domestic gasoline stocks rose by 2.7 million bbl to 218.8 million bbl. Although gas demand increased, increasing stocks and lower oil prices have contributed to limiting a rise in gas prices due to demand.
“Since more than half a gallon of gasoline is made up of crude oil, gas prices typically fall when we see a drop in crude oil prices,” Weaver Hawkins says. “Crude oil prices have dropped 40% since last June when the commodity was trading at about $120 per barrel.”
Weaver Hawkins adds that there are also factors that could push gas prices higher this summer. A hurricane that shuts down major U.S. refineries and/or increased demand for gasoline and other energy sources could bring some pain to the pump.
At the close of Monday’s formal trading session, WTI dropped by $3.05 compared to Friday, settling at $67.12 a barrel. While oil prices seemed to be recovering Tuesday after the $3 per barrel fall the day before, concerns over inflation, uncertainty over China’s expected rise in demand and the possibility of another surprise from the U.S. Federal Reserve have all kept oil markets in check.
Despite recent drops in oil price, gas prices in Kentucky and around the country, have seen small, incremental increases in many areas over the past week.
Today’s national average of $3.59 was steady overnight, though 5 cents higher than a week ago and 6 cents more than a month ago. Today’s average price is still $1.42 less than a year ago.
Today’s average in Kentucky rose 3 cents overnight to $3.34, now also 3 cents higher than one week ago. Today’s average is 7 cents higher than a month ago but $1.45 less than this time a year ago and also $1.45 less than the record high set on June11, 2022.
The average gas price in Lexington also rose 3 cents overnight, now averaging $3.40. Lexington’s current gas price average is just 1 cent lower than it was one week ago but 14 cents higher than a month ago. Today’s price is $1.37 cents lower than a year ago. Lexington’s all-time, record-high gas price average occurred back on June 10, 2022, when it reached $4.78 per gallon of regular gasoline.
Around the Commonwealth, the highest county-level average gas price can be found in Jefferson County, now at $3.68. The cheapest county-wide average price of gasoline in the commonwealth is in Bell County, averaging $2.94, and among just three counties averaging below the $3 mark.
Checking nearby, the average price for a gallon of regular today in Ohio is at $3.60, West Virginia $3.41, Virginia $3.32, Tennessee $3.16, Indiana $3.62, Illinois $4.00 and Missouri $3.20. Many surrounding states have seen sharp increases in gas price since Monday’s report, including Ohio with a 20-cent climb since the start of the week, though now just 13 cents higher than a week ago. Ohio is posting the largest week on week increase in the nation as of today.
The highest gasoline average price in the country is still California at $4.89, while Mississippi has the lowest average gas price, now at $2.99 and the only state below the $3 mark.
Since last Monday, these 10 states have seen the largest changes in their averages: Oregon (+16 cents), Indiana (+16 cents), Wisconsin (+15 cents), Arizona (-14 cents), Florida (+13 cents), Illinois (+13 cents), Washington (+12 cents), Michigan (+12 cents), Alaska (+8 cents) and Texas (+7 cents).
The nation’s top 10 least expensive markets: Mississippi ($2.99), Louisiana ($3.12), Arkansas ($3.13), Alabama ($3.14), Texas ($3.15), Tennessee ($3.16), South Carolina ($3.18), Missouri ($3.20), Oklahoma ($3.20) and Kansas ($3.25).
Gas-saving tips
• 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. Did you delay regular maintenance during the pandemic because you were driving less? Now is the time to get it looked at.
• 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 gas 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.
• Consolidate trips. Combining errands into one trip saves you time and money. Several short trips taken from a cold start can use twice as much fuel as a longer multi-purpose trip covering the same distance when the engine is warm. 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%.
AAA Blue Grass