VIRGINIA BEACH — AAA said despite what it called a notable cratering in national gas demand in the days since the July Fourth holiday, pump prices crept higher over the past week.
The culprit is a higher price for oil, which moved from the upper $60s per barrel recently to the mid-$70s, it said.
“National gas demand has fallen nearly 10% since the holiday, as folks have returned to their day-to-day driving routines,” said Ryan Adcock, AAA Tidewater public relations specialist. “Typically, this would lower gas prices, but such a move is being countered for now by the increasing cost for oil, the main ingredient in gasoline.”
According to data from the Energy Information Administration (EIA), gas demand decreased significantly from 9.6 to 8.76 million barrels per day last week, while total domestic gasoline stocks stayed flat at 219.5 million barrels. Although lower gas demand typically pushes pump prices lower, AAA said rising oil prices have lifted them, adding if oil prices continue to rise, pump prices will likely follow suit.
Thursday’s national average of $3.55 is three cents more than a month ago but $1.08 less than a year ago.
Locally, the gas price average for the Commonwealth increased to $3.35, four cents higher than a week ago and three cents higher than a month ago. In Hampton Roads, prices increased two cents to $3.44, which is eight cents higher than last month and 99 cents lower than a year ago.
