Monday, July 15, 2024

AAA: Despite the Rise in Temperatures, Gas Prices Keep it Cool

Photo by Erik Mclean on Unsplash

VIRGINIA BEACH — This week saw another slide in gas prices as the national average for a gallon of gasoline dipped two cents since last Thursday to $3.46.

AAA pointed to lackluster gasoline demand and burgeoning supply as the main reasons for the decline.

“Gasoline demand has trailed 2023 for most of this year, and analysts believe economic uncertainty may suppress demand this summer,” said Ryan Adcock, AAA Tidewater spokesperson. “So, is the typical robust summer driving season a thing of the past? Or is gas demand just taking longer to pick up steam?  We may not know until autumn.”

According to new data from the Energy Information Administration (EIA), gas demand crept higher from 8.94 million to 9.04 barrels per day last week, while total domestic gasoline stocks jumped from 230.9 million to 233.5 million barrels as production increased, averaging 10.1 million barrels per day. Mediocre gasoline demand, increasing supply, and stable oil costs will likely lead to falling pump prices, AAA said.

Thursday’s national average was $3.46, 15 cents less than a month ago and 13 cents less than a year ago.

Locally, the gas price average for the Commonwealth decreased to $3.34 —  four cents lower than a week ago and ten cents lower than a month ago. In Hampton Roads, prices decreased ten cents to $3.23, 17 cents lower than last month and 13 cents lower than a year ago.

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