Wednesday, February 21, 2024

AAA: An Early Holiday Gift — Lower Gas Prices

(WYDaily/ Courtesy of Unsplash)

VIRGINIA BEACH — The national average for a gallon of gas has shed six cents since last week to $3.18, according to AAA.

According to the organization, the main reason is a weaker cost for oil, which is struggling to stay above $70 per barrel, with the falling price coming just a week after OPEC+ announced voluntary production cuts of about 2 million barrels daily.

“Historically, crude oil tends to drop nearly 30 percent from late September into early winter with gasoline prices trailing the play,” said Ryan Adcock, AAA Tidewater public relations specialist. “More than half of all US fuel locations have gasoline below $3 per gallon. By the end of the year, the national average may dip that low as well.”

According to new data from the Energy Information Administration (EIA), gas demand increased slightly from 8.21 million to 8.47 million barrels per day last week. Meanwhile, total domestic gasoline stocks increased significantly by 5.4 million barrels to 223.6 million.

Despite low gas demand, AAA said supply growth has helped push pump prices lower, and if oil prices remain low, drivers can expect pump prices to do the same during the holiday season.

Today’s national average of $3.18 is 22 cents less than a month ago and 14 cents less than a year ago. Today’s state average is the lowest Virginians have seen thus far this year — the previous low was on Jan. 1, with a price of $3.09.

(AAA Tidewater)

Locally, the gas price average for the Commonwealth decreased landing at $3.13, four cents lower than a week ago and 25 cents lower than a month ago. In Hampton Roads, prices increased one cent to $3.07, which is 22 cents lower than last month and 37 cents lower than a year ago.

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