(WASHINGTON, April 29, 2013)

Motorists Pay Lowest Springtime Gas Prices in Three Years

• Gas prices nationally averaged $3.55 per gallon in April, which was the least expensive average for the month since 2010. Gas prices dropped about 13 cents per gallon in April (3.5 percent), which was the largest percentage decline for the month in ten years. In comparison, gas prices in 2012 averaged $3.89 for the month, while the average price in April 2011 was $3.79 per gallon.
• “Gas prices in much of the country have declined this spring because of lower oil costs, ample refinery production and continued weak demand,” said Avery Ash, AAA spokesman. “Gas prices have fallen faster and earlier than ever before for this time of year, and it is saving motorists millions of dollars per day in lower fuel costs.”
• The national average price of gas for April 30, 2013 is $3.51 per gallon, which is the fourth highest on record for this day. The national average a year ago was $3.82 per gallon, while the average on this day in 2011 was $3.93 per gallon and in 2008 it was $3.62 per gallon.
• AAA has no record of gas prices previously peaking in February, yet the highest average of the year so far is $3.79 per gallon on Feb. 27. Since that time, the average price nationally has dropped 50 out of 62 days for a total of 28 cents per gallon. The peak price in 2012 was $3.94 per gallon on April 5 and 6, while the peak in 2011 was $3.98 on May 5.
• West Texas Intermediate (WTI) oil prices dropped below $87 per barrel in mid-April, which was the lowest closing price since December. The price of WTI began the month at more than $97 per barrel and closed yesterday at $94.50 per barrel. Oil and commodity prices dropped earlier in the month as a result of expectations of yet another “spring swoon” for the economy.
• Half of U.S. adults consider gas prices to be “too high” when it reaches $3.44 per gallon, according to a new consumer index developed by AAA. Forty-six percent of adults believe gas is too high when it reaches $3.00 per gallon; 61 percent believe it is too high when it reaches $3.50 per gallon; and 90 percent believe gas is too high when it reaches $4.00 per gallon. Sixty-two percent of Americans are offsetting high gas prices by changing their driving habits or lifestyle.

Gas Prices Should Drop to $3.20-$3.40 During Summer Driving Season

• Gas prices should drop to $3.20 to $3.40 per gallon by mid-summer if current trends continue in regards to oil prices, motorist demand and refinery production. Gas prices in recent years have declined in early summer after reaching a springtime peak as refineries ramp up gasoline production in anticipation of the summer driving season.
• “Families taking trips this summer can expect to pay lower gas prices than recent years as long as there are not any refinery problems or significant international news events,” continued Ash. “Lower prices should bring at least some relief to everyone going on vacation, but it is clear that millions of motorists will continue to believe that prices are too high for this time of year.”
• Over the next few weeks average prices nationally could remain flat or even rise slightly as some maintenance and production issues continue. Prices in the Great Lakes region, in particular, could rise as a result of both scheduled and unscheduled refinery maintenance. Gas stations in many parts of the country also must begin selling more expensive summer-blend gasoline by June 1 in order to meet federal air quality standards.

Cheapest Gas Prices Predominately in the Southeastern United States

• The cheapest gas prices are predominately in the Southeast where extensive refinery production and lower-than-average taxes have helped keep prices low in comparison to the rest of the country. Gas prices in the Great Lakes region have increased in recent weeks because of planned refinery maintenance and unscheduled outages following recent heavy storms.
• Motorists in every state in the continental U.S. are paying less than $4 per gallon for gasoline. The only state paying above that threshold is Hawaii, which generally is the most expensive gasoline market in the country.
• The five states with the highest averages today include: Hawaii ($4.34), Alaska ($3.97), Ill. ($3.91), Calif. ($3.90) and Mich. ($3.79). The five states with the cheapest gas price averages today include: S.C. ($3.23), Tenn. ($3.26), Ala. ($3.27), Ark. ($3.27) and Miss. ($3.28).

Learn how to save money on gas with a few simple tips from AAA. 

Increase in maintenance, insurance and fuel drive up average cost for sedans to $9,122 yearly, 60.8 cents per mile

ORLANDO, Fla., (April 16, 2013) – AAA released the results of its annual ‘Your Driving Costs’ study today, revealing a 1.96 percent increase in the cost to own and operate a sedan in the U.S. The average cost rose 1.17 cents to 60.8 cents per mile, or $9,122 per year, based upon 15,000 miles of annual driving.

“Many factors go into the cost calculation of owning and operating a vehicle,” said John Nielsen, AAA Director of Automotive Engineering and Repair. “This year, changes in maintenance, fuel and insurance costs resulted in the increase to just over 60 cents a mile.”

The findings of the 2013 ‘Your Driving Costs’ study include:

Additional Resources

• INFOGRAPHIC: 2013 Your Driving Costs
• BROCHURE: 2013 Your Driving Costs

In-depth findings of this year’s study, including a breakdown of specific costs by category of vehicle and various annual mileages, are contained in the ‘Your Driving Costs’ brochure which is available at select local AAA branch offices or may be downloaded in the additional resources bar.

Nielsen continued, “Before you make any vehicle purchase, it is important to determine ownership and operational costs and compare them to your current and future financial situation.” To assist consumers in determining their individual driving costs, the AAA ‘Your Driving Costs’ brochure contains a worksheet that can be filled out and personalized for a specific area, driver and vehicle.

Maintenance Costs Up 11.26 Percent

The costs associated with maintaining a vehicle had the single largest percentage increase from 2012 to 2013, growing by 11.26 percent to 4.97 cents per mile on average for sedan owners. AAA’s estimates are based upon the cost to maintain a vehicle and perform needed repairs for five years and 75,000 miles including labor expenses, replacement part prices and the purchase of an extended warranty policy.  Driving the increase in maintenance costs is significant increases in labor and part costs for some models and a major increase in the price of extended warranty policies due to high loss ratios by underwriters.

Fuel Costs Up 1.93 Percent

Gasoline prices were relatively stable compared to the prior year, leading to a minimal fuel cost increase of 1.93 percent to 14.45 cents per mile on average for sedan owners. The average cost of regular grade fuel (used by most of the study vehicles) actually rose 3.84 percent, from $3.357 to $3.486 per gallon. However, several vehicles in the ‘Your Driving Costs’ study had small improvements in their fuel economy ratings which partially offset the fuel cost increase. Fuel costs in the 2013 study were calculated using the national average price for regular, unleaded gasoline during the fourth quarter of 2012.

Tire Costs Remain Unchanged
The cost of tires did not change from 2012 to 2013, remaining at one cent per mile on average for sedan owners. The stable price is attributed to a leveling off of past increased costs for raw materials, energy and transportation from factories to distributors across the country.

Insurance Costs Up 2.76 Percent

Average insurance costs for sedans rose 2.76 percent (or $28) to $1029 annually. Insurance rates vary widely by driver and driving record, issuing company and geographical region. AAA insurance cost estimates are based on a low-risk driver with a clean driving record. Quotes from five AAA clubs and insurance companies representing seven states showed across-the-board modest increases for all sedan sizes, with large cars having less of an increase than small- and medium-size sedans.

Depreciation Costs Rise .78 Percent

After seeing a drop in 2012, depreciation costs were up slightly in 2013, increasing .78 percent to $3,571 a year. This change may be a consequence of recovering new vehicle sales, resulting in more used cars available in the marketplace and thus the softening of the resale value of clean older models.

63^rd Year of ‘Your Driving Costs’ Study

AAA has published ‘Your Driving Costs’ since 1950. That year, driving a car 10,000 miles per year cost 9 cents per mile, and gasoline sold for 27 cents per gallon.

The ‘Your Driving Costs’ study employs a proprietary AAA methodology to analyze the cost to own and operate a vehicle in the United States. Variable operating costs considered in the study include fuel, maintenance and repair, and tires. Fixed ownership costs factored into the results include insurance, license and registration fees, taxes, depreciation and finance charges. Ownership costs are calculated based on the purchase of a new vehicle that is driven over five years and 75,000 miles. Your actual operating costs may vary. See AAA’s 2013 ‘Your Driving Costs’ brochure for a list of vehicles and additional information on the underlying criteria used in the study.

As North America’s largest motoring and leisure travel organization, AAA provides more than 53 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.

(WASHINGTON, April 8. 2013) Today’s national average price for a gallon of regular unleaded gasoline is $3.59. This price is four cents less expensive than one week ago, 11 cents less than one month ago and 34 cents less than one year ago. Today’s 34-cent year-over-year decline is the largest such mark since October 20, 2009. The national average has now fallen for 5 straight days and 34 of 40 days since the peak 2013 price to date of $3.79 on Feb. 27. In 2011 the national average for regular unleaded gasoline peaked at $3.98 on May 5. In 2012 the price peaked at $3.94 on April 5 and 6.

Motorists in every state are enjoying year-over-year price relief at the pump, including declines of more than 40 cents per gallon in nine states. Month-over-month relief has been nearly as universal with drivers in only four states in the Mountain West paying more than they did a month ago: Utah (13 cents), Idaho (5 cents), Colo. (3 cents) and Mont. (2 cents).

Retail gas prices across the country surged to begin 2013, as the national average increased 49 cents through the end of February. This was the largest increase on record for the first two months of a year. The run up was only somewhat attributed to higher crude oil prices and was instead driven by a decline in refinery production and higher gasoline futures prices. Similarly, the recent decline following the dramatic rise has not been a product of lower crude oil prices, which have actually increased during this stretch. Falling retail gas prices have instead been the result of an increase in refinery production and economic concerns, which have raised demand concerns.

West Texas Intermediate (WTI) crude oil has traded in a relatively narrow range of $7.82 in 2013 in comparison to recent years. WTI began the year at $93.12 and increased to a year-to-date peak of $97.94 on January 30 before settling as low as $90.12 on March 4. By comparison, WTI traded in a $22.40 range during the first quarter of 2011 (a low of $84.32 on February 15, a high of $106.72 on March 31) and a $13.41 range during the same period in 2012 (a low of $96.36 on February 2, a high of $109.77 on February 24).

After economic concerns sent WTI tumbling during the second half of last week, prices recovered slightly today. At the close of formal trading on the NYMEX WTI settled 66 cents higher at $93.36 per barrel.

(WASHINGTON, April 1 ,2013) Today’s national average price for a gallon of regular unleaded gasoline is $3.63. This price is four cents less expensive than one week ago, 12 cents less than one month ago and 29 cents less than one year ago. The national average has fallen for 12 consecutive days and 29 of 33 days since the peak 2013 price to date of $3.79 on Feb. 27.

At the state level, prices have fallen for drivers in the vast majority of the country. Forty-two states have a lower average price today than one week ago, led by declines of more than a dime in three states: Ind. (15 cents), Ohio (14 cents) and Mich. (12 cents). Forty-five states and Washington D.C. have a lower average price than one month ago, led by declines of more than 20 cents in five states: Ohio (24 cents), Ga. (24 cents), Mich. (21 cents), Fla. (21 cents) and Ind. (20 cents). The only five states where motorists pay a higher average price than one month ago are in the Mountain West: Idaho (0.03 cents), Colo. (0.6 cents), Utah (4 cents), Wyo. (4 cents) and Mont. (5 cents).

Despite experiencing the two largest month-over-moth increases at the pump, motorists in Wyo. and Mont. still pay the least in the nation for a gallon of gasoline at $3.33 and $3.36 respectively. Drivers in only two states pay an average of more than $4.00 (Hawaii $4.38 and Calif. $4.04), which is the fewest since February 19.

While retail gas prices declined steadily in March, oil prices creeped higher on signs of continued economic recovery. West Texas Intermediate (WTI) began the month with what was at the time it’s lowest settlement of the year ($90.68 per barrel) before rising to end March at it’s highest price since February 14 ($97.23). Prices retreated slightly today as WTI settled 16 cents lower at $97.07 per barrel at the close of formal trading on the NYMEX.

(WASHINGTON, April 1, 2013)

Gas Prices Nearly 30 Cents per Gallon Less Expensive than Last Spring

• The national average price of gasoline decreased during March for the first time in 10 years, and gas prices now average nearly 30 cents per gallon less than a year ago. The national average should remain less expensive than last year’s prices this spring.
• Today’s national average is $3.63 per gallon, which compares to $3.92 per gallon a year ago. The national average decreased 15 cents per gallon (3.9 percent) last month, which was the first month-over-month decline for March since 2003, when the average decreased by one cent per gallon.
• “It is very unusual for gas prices to decline in early spring like we have seen this year,” said AAA spokesman Avery Ash. “An increase in refinery production and lower oil prices in early March have combined to provide rare falling prices for motorists in comparison to recent years.”
• The national average reached $3.79 per gallon on Feb. 27, which currently is the highest average price for 2013. Since that time the national average has dropped 29 out of 33 days.
• The national average increased 34 cents (10 percent) per gallon from the beginning of the year ($3.29) through the end of the first quarter of 2013. Last year, gas prices increased nearly twice as much during the first quarter with a rise 65 cents (20 percent) per gallon.
• This week marks the one-year anniversary of the 2012 peak in gas prices, when the national average reached $3.94 per gallon on April 5 and 6. Gas prices peaked in 2011 at $3.98 per gallon on May 5.
• Gas prices declined in March as many refineries resumed normal operations following the completion of seasonal maintenance. The price of West Texas Intermediate (WTI) crude oil also remained relatively low for much of the month. Gas prices spiked in late January through February primarily because of supply concerns with refineries in February processing the lowest amount of crude oil in nearly two years due to extensive maintenance and facility upgrades.

Gas Prices in April Should Remain Less Expensive than Recent Years

• Gas prices in April should remain less expensive than in recent years because oil is cheaper and refinery production is rising. The price of WTI crude oil is about $6 per barrel less than a year ago, while refinery utilization has increased by about five percent since early March, according to the federal Energy Information Administration.
• “AAA has no record of gas prices ever peaking in February, and it is too early to say whether prices may have hit a high for the first half of the year,” continued Ash. “While it is possible that gas prices may surge briefly again this spring, the national average should remain less than last year’s high of $3.94 per gallon. Yet even with the recent declines, we cannot lose track of the fact that gasoline remains very expensive for many American motorists.”
• Much of the country must transition to more expensive summer-blend gasoline and there is still refinery maintenance left to complete, which could result in a brief surge in gas prices.
• AAA expects the average price of gas in 2013 will be less than last year as a result of increased domestic production and continued low demand.

Fewer Americans Paying $4 per Gallon for Gasoline

• Motorists in only two states are paying an average of more than $4 per gallon for gasoline today, which includes Hawaii ($4.38) and California ($4.04). This contrasts with a month ago when 60 million Americans (20 percent) lived in a state where gas prices averaged more than $4 per gallon.
• The five states with the highest gas price averages today include: Hawaii ($4.383), Calif. ($4.044), Alaska ($3.998), N.Y. ($3.893) and Conn. ($3.873). The five states with the cheapest gas price averages today include: Wyo. ($3.328), Mont. ($3.358), S.C. ($3.411), Tenn. ($3.425) and Ark. ($3.436).

Learn how to save money on gas with a few simple tips from AAA. 

AAA updates fuel price averages daily at www.FuelGaugeReport.AAA.com. Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

( WASHINGTON, March 25, 2013) Today’s national average price for a gallon of regular unleaded gasoline is $3.67. This price is two cents less than one week ago, eleven cents less expensive than one month ago and 23 cents less than the average price one year ago. The national average has fallen for five consecutive days and 22 of 26 days since the peak 2013 price to date of $3.79 on Feb. 27.

It is still too soon to say whether retail prices have peaked for the spring because there is still refinery maintenance to be completed and much of the country has yet to transition to summer-blend gasoline. However, with the national average falling further below the year-ago price, AAA continues to predict that the national average will crest lower than recent years. In 2011 the national average for regular unleaded peaked at $3.98 on May 5. In 2012 the price peaked at $3.94 on April 5 and 6.

As the national average price of gasoline has drifted lower, motorists in the vast majority of states have felt welcome relief at the pump. Drivers in 41 states and Washington D.C. pay less today than one month ago, led by declines of more than 20 cents in Georgia and Minnesota. The only states paying more than one month ago are some Western states: Mont. (11.2 cents), Wyo. (8.4 cents), Wash. (6.4 cents), Alaska (4.4 cents), Ore. (4 cents), Hawaii (3.8 cents), N.M. (2.1 cents), Ariz. (1.2 cents) and Utah (0.8 cents). Motorists in every state pay less today for gas than they paid on the same day in 2012, and every state, with the exception of North Dakota (-3.6 cents), has an average price that is at least a dime less than a year ago.

Oil markets kept a wary eye on signs of economic instability overseas last week, following discussions of a 10 billion euro bailout package for Cyprus. While that country accounts for just 0.2% of the economic activity in the eurozone, there were some concerns that instability could spread to other economies if an agreement was not reached. Following news over the weekend that a bailout deal had been agreed to crude oil prices moved higher today. At the close of formal trading on the NYMEX West Texas Intermediate (WTI) crude oil settled up $1.26 at $93.71 per barrel.

(WASHINGTON, March 18, 2013) Today’s national average price for a gallon of regular unleaded gasoline is $3.68. This price is a penny less than one week ago, fractions of a penny less expensive than one month ago and fifteen cents less than the average price one year ago. Today is the first day since January 11 that the average price at the pump has registered a month-over-month decline. The national average has fallen for five consecutive days and 17 of 19 days since the peak 2013 price to date of $3.79 on Feb. 27.

As the national average price at the pump has drifted lower, motorists across the country have experienced varying degrees of price relief. Drivers in 38 states and Washington D.C. pay less today than they did last Monday and those in 28 states pay less than one month ago.

Prices in Ind. (11.7 cents), Ohio (9.5 cents), Ky. (7.3 cents) and Mich. (7.0 cents) are each more than a nickel higher than one week ago, although, as reflected in the chart above, these are also some of the same states that have seen the largest month-over-month declines. Prices in nine states and Washington D.C. are at least a dime more than one month ago.

While the recent price movement has varied by state, the year-over-year savings have been nearly universal. Motorists in every state, with the exception of North Dakota, pay less than the same day last year, led by nine states where prices have dropped by at least 20 cents and one state (Ill.) where the price is more than 30 cents lower.

After declining during the second half of February, West Texas Intermediate (WTI) crude oil prices have posted slight gains in recent weeks on positive economic news. These gains continued today, despite traders keeping a wary eye on fresh signs of economic instability in the eurozone, centered on a 10-billion-euro bailout package for Cyprus. Crude oil futures are priced in U.S. dollars. When economies weaken overseas, the dollar strengthens and the price of oil becomes relatively more expensive. Oil futures subsequently become a less attractive investment, which is expected to exert downward pressure on prices. While the value of the U.S. dollar did rise today, WTI futures managed to eek out a gain as well, settling 29 cents higher at $93.74 at the close of formal trading on the NYMEX.

(WASHINGTON, March 11, 2013) Today’s national average price for a gallon of regular unleaded gasoline is $3.70. This price is 12 cents more than one month ago, but it is five cents less expensive than one week ago and ten cents less than the average price one year ago. The average price U.S. motorists pay at the pump has now declined for 12 straight days, which is the longest streak of falling prices in 2013.

The national average has dropped nine cents to begin March, which is counter to the trend that motorists may remember from the same stretch in recent years. The price increased by 17 cents and six cents during the same periods in 2011 and 2012, respectively.

It is too soon to say whether retail prices have peaked for the spring, because there is still refinery maintenance to be completed and much of the country must still transition to summer-blend gasoline. Yet even if prices do increase, AAA continues to predict that the national average will likely crest lower and earlier than recent years. In 2011 the national average for regular unleaded peaked at $3.98 on May 5. In 2012 the price peaked at $3.94 on April 5 and 6. The highest price to date in 2013 is $3.79 on Feb. 27.

Motorists in 44 states and Washington D.C. are paying less at the pump than one week ago. The most dramatic declines during this period have taken place in several Midwestern states and Kentucky, while only drivers in Hawaii (0.2 cents), Ore. (1.1 cents), Alaska (1.1 cents), Wyo. (1.8 cents), Wash. (2.0 cents) and Mont. (3.6 cents) are paying more than they were last Monday. Despite the recently lower prices in many parts of the country, motorists in every state with the exceptions of Ind., Mich., N.J., Del. and Ohio are paying more to fill up their cars than one month ago.

The spike in pump prices earlier this year was a product of refinery maintenance and concerns, rather than more expensive crude oil. These refinery issues pressured both wholesale and futures prices higher for gasoline, while crude oil prices only increased slightly during the same period. The recent decline in the national average is partially due to cheaper crude oil but is more closely linked to sharply lower wholesale gasoline prices.

At the close of formal trading on the NYMEX, West Texas Intermediate (WTI) crude oil prices settled up 11 cents at $92.06 per barrel. For comparison, on the nearest trading day in 2011 and 2012, WTI settled at $101.16 and $106.34, respectively. These more expensive prices in recent years were driven by violence and geopolitical tensions overseas (Libya in 2011 and Iran in 2012). Without similar concerns to begin 2013, crude oil prices have been less expensive and less volatile.

(WASHINGTON, March 4, 2013) Today’s national average price for a gallon of regular unleaded gasoline is $3.75. This price is 25 cents more than one month ago, but it is three cents less expensive than one week ago and two cents less than the average price one year ago. Yesterday was the first time since Jan. 31 that the national average has fallen below the price for the same day in 2012.

The national average increased for 36 consecutive days from Jan. 17-Feb. 22. During this streak retail prices surged 49 cents per gallon from $3.29 to $3.78, which was just below the year-to-date high of $3.79 on Feb. 27. Since this recent peak, the national average has dropped for five straight days and declined a total of four cents.

Motorists in every state are paying more at the pump than one month ago, however many drivers are beginning to feel some welcome relief. 27 states have an average price that is cheaper than one year ago and 38 states and Washington D.C. are paying less than one week ago. With “spot” gasoline prices (gasoline sold for immediate payment and delivery) dropping dramatically across the country it is likely that retail prices will continue to fall in the coming days.

These recent declines and the fact that the national retail average has fallen back below the year-ago price supports AAA’s prediction that gas prices will peak this spring at a lower level than recent years. In 2011 the national average for regular unleaded peaked at $3.98 on May 5. In 2012 the price peaked at $3.94 on April 5 and 6.

Sharply higher pump prices in January and February of this year were driven by refinery maintenance and concerns, rather than more expensive crude oil. These refinery issues pressured wholesale gasoline prices higher, while crude oil prices only rose slightly during the same period. The recent decline in the national average is partially due to cheaper crude oil but is more closely linked to tumbling wholesale gasoline prices.

Crude oil prices began 2013 at $93.12 per barrel and increased as high as $97.94 on Jan. 30. At the close of formal trading on the NYMEX, WTI prices settled 56 cents lower at $90.12 per barrel. For comparison, on March 4 (or the nearest trading day) in 2011 and 2012 WTI settled at $104.42 and $106.72 respectively. Each of these significatly more expensive prices was driven by violence and geopolitical tensions overseas (Libya in 2011 and Iran in 2012). Without similar concerns to begin 2013, crude oil prices have been substantially less expensive and less volatile.

Additional Resources

• AAA’s Gas Saving Tips

(WASHINGTON, February 28, 2013)

Highest Increase in Gas Prices to Begin Year on Record

• The national average price of gasoline has increased 49 cents per gallon since the beginning of the year, which is the highest price increase through the end of February on record. Gas prices began 2013 at $3.29 per gallon and have climbed a total of 46 days to a national average of $3.78 per gallon. The previous record through the end of February was a rise of 46 cents per gallon in 2012.
• The dramatic increase has resulted in the highest average prices ever for this time of year. The average price of gas in February was $3.65 per gallon, which was ten cents higher than the previous record for the month set in 2012. Today’s national average of $3.782 per gallon is five cents higher than the average a year ago.
• “Gas prices increased at a dramatically faster pace than expected in February,” said Avery Ash, AAA spokesman. “Motorists unfortunately are paying more for gasoline than ever at this time of year, and it is primarily because of a decline in refinery production and higher futures prices.”
• Many refineries decreased fuel production in January and February to conduct seasonal maintenance and facility upgrades. Along with unplanned refinery issues, this has resulted in the lowest rate of crude oil processing since April 2011. Decreased production squeezes gasoline supplies, which leads to higher pump prices for motorists.
• The anticipated transition to summer-blend gasoline also has contributed to higher prices. The switchover takes place every year and is required to help meet local air quality standards. Summer-blend gasoline costs more to produce and can lead to logistical and distribution challenges.
• The sharp rise in gas prices has come despite a recent drop in the price of crude oil. West Texas Intermediate (WTI) oil futures are about $14 per barrel less than a year ago, which reduces the cost of refining gasoline.

Gasoline Likely to Peak at Lower Average Price than Recent Years

• AAA expects gas prices to peak at a lower national average than last year’s high of $3.94 per gallon. While seasonal gas prices have recently peaked in April or May, it is possible that prices will peak even earlier this year.
• “There is a lot of uncertainty on where gas prices will go over the next few weeks, but hopefully the worst of the price spikes are behind us for now,” continued Ash. “There is still refinery maintenance to be completed and most of the country must transition to summer-blend gasoline, so motorists are likely to face continued high prices in the weeks ahead.”
• Despite the spike in gasoline prices, WTI crude oil has dropped almost $5 per barrel in recent weeks as a result of record-high supplies and concerns about the global economy.
• The national average price of gas has increased in March for nine years in a row, indicating that seasonal supply and demand factors for this time of year can have a significant effect on gas prices.

Gas Prices Vary by More than $1 per Gallon Across the Country

• Gas prices vary by more than a $1 per gallon between the most expensive and cheapest states. The lowest gas prices are in the Rocky Mountain region, which is supplied by refineries with access to relatively cheap crude oil. The most expensive prices in the continental U.S. are in Calif. and N.Y., which have the highest gasoline taxes in the nation.
• Approximately 60 million Americans (nearly 20 percent) today live in a state where gas prices average more than $4 a gallon. Only about eight million Americans (three percent) live in a state where gas is less than $3.50 per gallon on average.
• The five states with the highest averages today include: Hawaii ($4.37), Calif. ($4.24), Alaska ($4.02), N.Y. ($4.01) and Conn. ($3.99). The five states with the lowest averages today include: Wyo. ($3.29), Mont. ($3.29), Utah ($3.43), Idaho ($3.45) and N.M. ($3.49).