Friday, March 1, 2024

AAA: Like the Sizzling Temperatures, Gas Prices Climb Higher

(WYDaily/ Courtesy of Unsplash)

VIRGINIA BEACH — The national average for a gallon of gas surged 13 cents since last week to $3.71.

According to AAA Tidewater, the primary cause appears to be the oil price, which has marched nearly $4 higher in the past few days to hover near $80 per barrel, adding as oil accounts for almost 50% of the cost of a gallon of gas, higher oil prices usually mean higher pump prices.  

“National gas demand, meaning people fueling up, remains tepid. It’s lower now than at this time last year and in 2021,” said Ryan Adcock, AAA Tidewater public relations specialist. “But while the heat may be keeping some folks home, it also suppresses refinery production, according to experts.  Constrained supplies and a higher cost of oil are tipping the balance toward rising pump prices for now.”

According to new data from the Energy Information Administration (EIA), gas demand rose slightly from 8.86 million barrels per day to 8.94 million last week, while total domestic gasoline stocks dipped from 218.4 million to 217.6 million barrels. AAA said with supplies tight, if demand spikes, pump prices will follow suit.

Today’s national average of $3.71 is 15 cents more than a month ago but 59 cents less than a year ago.

(AAA Tidewater)

Locally, the gas price average for the commonwealth increased to $3.52, 11 cents higher than a week ago and 21 cents higher than a month ago. In Hampton Roads, prices increased eight cents to $3.54, 15 cents higher than last month and 51 cents lower than a year ago.

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