Sunday, July 21, 2024

AAA: Gas Prices Surge Higher, But for How Long?

(WYDaily/ Courtesy of Unsplash)

VIRGINIA BEACH — The national average for a gallon of regular gasoline increased nearly a dime since last week to $3.46, according to AAA.

AAA noted the jump in price could be short-lived, as demand and the global cost of oil have both fallen recently.

“Less expensive oil and fewer people fueling usually combine to lower pump prices,” said Ryan Adcock, AAA Tidewater public relations specialist, “However, there is some upward pricing pressure at the moment due to the switch to summer blend gasoline, which may add about five to ten cents per gallon. But if demand and oil costs remain low, this recent price bounce may fade.”

According to data from the Energy Information Administration (EIA), gas demand declined from 9.11 million to 8.56 million barrels per day last week. At the same time, total domestic gasoline stocks decreased by 1.1 million barrels to 238.1 million. While gas demand has declined, the fluctuating price of oil increased pump prices amid tighter supply.

Thursday’s national average of $3.46 is three cents more than a month ago, but 79 cents less than a year ago.

(AAA Tidewater)

Locally, the gas price average for the commonwealth increased to $3.21, eight cents higher than a week ago and nine cents lower than a month ago. In Hampton Roads, prices increased 13 cents to $3.15, nine cents lower than last month and $1.07 lower than a year ago.

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