If you've visited the pump recently, you've likely noticed gas prices are on the rise. The good news is that prices didn't increase as much this week as the week prior which could signal better things ahead for driver's pocketbooks.
According to the American Automobile Association, the average for a gallon of regular gasoline rose less than a nickel since last week to hit $3.68. The week prior it rose 9 cents. AAA says we can thank a drop in demand and tumbling oil prices.
“The recent surge in oil costs took a break this week, with the price of oil tumbling back into the upper $70s per barrel,” said Andrew Gross, AAA spokesperson. “If this oil price trend continues, drivers may see falling gas prices.”
AAA cites new data from the Energy Information Administration (EIA) showing that gas demand fell from 8.94 to 8.52 million b/d last week. Meanwhile, total domestic gasoline stocks increased slightly by 1.3 million bbl to 223.5 million bbl. Lower demand, alongside growth in stocks, would typically push pump prices down; however, elevated oil prices over the past month pushed them higher.
Another thing to keep in mind is that U.S. refineries are returning to service from extensive winter/spring maintenance. The EIA said total input rose last week by 330,000 b/d to 16.44 million b/d, putting it above this time last year. More refinery operations will be restarted in the next three weeks, with some planned work extending into June.
The national average of $3.68 is 24 cents more than a month ago but 43 cents less than a year ago.
Since last Thursday, these 10 states have seen the largest increases in their averages: Arizona (+16 cents), Florida (+14 cents), Washington (+13 cents), Montana (+12 cents), New Hampshire (+11 cents), Kansas (+11 cents), Connecticut (+11 cents), Rhode Island (+10 cents), North Dakota (+10 cents) and Massachusetts (+10 cents).
The nation’s top 10 most expensive markets: California ($4.90), Hawaii ($4.78), Arizona ($4.68), Washington ($4.56), Nevada ($4.28), Illinois ($4.09), Oregon ($4.07), Alaska ($3.93), Pennsylvania ($3.77) and Washington, D.C. ($3.74).
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