Posts Tagged ‘Gas Information’

Gas Prices Climb to Six-Month High

May 2nd, 2016 by AAA

Michael Green Contact Tile(WASHINGTON, May 2, 2016) Gas prices are at their highest levels in more than six months, and the national average has remained above $2 per gallon for 40 consecutive days. Today’s average price of $2. 22 represents an increase of eight cents per gallon on the week, and prices are up 16 cents per gallon on the month. Ample gasoline supplies and relatively lower crude oil costs are helping to sustain year-over-year savings, with today’s price discounted by 39 cents per gallon versus a year ago.

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Gasoline demand continues to break seasonal records as low prices motivate people to drive more. Additionally, crude oil costs are also increasing and recently reached new 2016 highs. Increased demand and more expensive oil costs have helped to push gas prices higher in many parts of the country over the past few weeks, and prices may move even higher leading into the busy summer driving season.

The average price at the pump for the month of April was $2.10 per gallon, which is the lowest average for this month since 2009. Only 20 percent of U.S. stations are still selling gas for less than $2 per gallon and pump prices are moving due to growth in fuel demand, which is up 5.6 percent versus a year ago, according to the latest data from the U.S. EIA. Gas prices have increased by 52 cents per gallon after hitting a 2016 low in mid-February.

Four states are posting averages below $2 per gallon, which is nine fewer states than last week’s report. Retail averages have historically fluctuated during this time of year, and although the overall price at the pump is beginning to trend higher, gas prices during this year’s summer driving should remain noticeably discounted in comparison to previous years.

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The national average price of diesel has been cheaper than gasoline for the past five days, and diesel may remain less expensive than gasoline for the remainder of the summer. In recent years it has been rare for diesel to be cheaper than gasoline. The last time the national average price of diesel was less than gasoline for a significant period was in the summer of 2009, when the average was cheaper for 48 days in a row. It is possible that diesel will remain cheaper than gasoline for the next 3-4 months due to abundant supplies and seasonal factors impacting both gasoline and diesel.

Quick Stats

  • The nation’s top five most expensive markets are: California ($2. 80), Hawaii ($2. 58), Nevada ($2.48), Alaska ($2.42) and Washington ($2.42).
  • The nation’s top five least expensive markets are: Oklahoma ($1.96), Texas ($1.98), Missouri ($1.99), Kansas ($1.99) and Mississippi ($2.00).
  • The most common price at the pump is $1.999 per gallon.

Consumer Attitudes

The lower price environment for gas prices has not only led to drivers taking to the roads at record levels, but is also shifting attitudes about various price points. Attitudes towards gas prices have changed significantly over the past few years, according to a new survey by AAA:

  • Half of U.S. drivers now believe gas is “too high” at $2.50 per gallon. This figure has dropped significantly in relationship to the price of gas. As recently as 2014, half of Americans believed gas was “too high” at $3.30 per gallon, while last year half of Americans believed it was “too high” at $3 per gallon. Only nine percent of U.S. stations are selling gas for more than $2.50 per gallon today.
  • More than 35 percent of Americans believe that gas is “too high” based on today’s average price, even though gas prices are at the lowest levels since 2009. The vast majority of Americans also do not believe that gas is “cheap” today.

West Coast

Gas prices on the West Coast remain some of the highest in the nation, led by California ($2.80) and Hawaii ($2.58), which are the only two states with averages above $2.50 per gallon. Regional neighbors Nevada ($2.48), Alaska ($2.42) and Washington ($2.42) join in the rankings as the top five most expensive markets. Six out of ten of the nation’s top 10 most expensive retail markets are located in this region.

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Refinery operations in California are described as relatively healthy compared to a year ago, and gasoline production on the West Coast is reportedly at a seven-month high. The market appears to be well supplied with product, and barring any unexpected disruptions in supply, gas prices in the region should hold relatively steady. Drivers in the region have benefitted from a surplus in gasoline supply versus one year ago, which has contributed to noticeable savings at the pump year-over-year. A total of five states nationwide are posting yearly discounts of more than 50 cents per gallon, all located within this region: California (-88 cents), Alaska (-68 cents), Nevada (-66 cents), Hawaii (-61 cents), Oregon (-59 cents).

ExxonMobil’s Torrance Calif. refinery is still in the process of restarting gasoline production, and is expected to be fully online in May. This refinery produces approximately 10 percent of all gasoline sold in California and when it went offline in February of 2015 due to an explosion, prices to spiked in the region.

Midwest

Prices in the Midwest continue to swing significantly due to movements in supply and demand. Retail averages are up double digits on the week in the Midwestern states of Michigan (+13 cents), Ohio (+13 cents), Indiana (+11 cents) and Illinois (+10 cents). Some of the largest jumps in gas prices month-over-month are also seen in the region, and averages are up by more than a quarter per gallon in Illinois (+29 cents), Indiana (+28 cents), Ohio (+28 cents) on the month.

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Despite this trend of weekly and monthly increases, this region is also home to some of nation’s least expensive markets for retail gasoline: Oklahoma ($1.96), Missouri ($1.99) and Kansas ($1.99).  Crude oil supply is reportedly building in the region and refineries are continuing to return to production following the spring maintenance season. The refinery utilization rate in the region is increasing, which should help stabilize the price at the pump, barring any unexpected disruptions in supply.

Gulf Coast

The Gulf Coast region includes some of nation’s least expensive markets for retail gasoline: Texas ($1.98), Louisiana ($2.00), Arkansas ($2.00) and New Mexico ($2.03). Ample supply is a contributing factor to the comparatively lower prices in the region, and the latest data from the U.S. EIA reflects an increase in gasoline inventories. Approximately 50 percent of the total U.S. refining capacity is located along the Gulf coast, which generally helps prices in the region to remain relatively low. However, a few refineries in the region are reporting challenges and supply could begin to tighten in the near term, which could support higher prices in the near term.

Oil Market Dynamics

Oil is the largest cost associated with producing gasoline, and every $1 change can increase gas prices by as much as 2.4 cents per gallon. The cost of crude has increased by approximately $10 per barrel since the beginning of April, attributed to interruptions in global supply and the expectation that demand will rise in the coming months.

Despite falling U.S. rig counts and weekly decreases in U.S. production, the domestic crude oil market remains well supplied. The latest data from the U.S. EIA shows an increase in both crude oil inventories and gasoline inventories, which should help offset growing demand and keep pump prices relatively low.

A weakening U.S. dollar and expectations that the Fed will increase interest rates is supporting speculations that the global oil market will begin to come into balance sooner than expected. Geopolitical factors are also likely to influence the market in the near team, and attention remains focused on both OPEC and non-OPEC production based on the current glut in global supply.

WTI reached its highest price for 2016 the last week in April as talks of a weakening U.S. dollar, increased demand and falling output surfaced. However, this boost in price was short lived and reports of increased production out of OPEC pushed prices lower to close out the week.  At the close of Friday’s formal trading session on the NYMEX, WTI was down 11 cents and settled at $45.92 per barrel.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Michael Green Contact Tile(WASHINGTON, April 25, 2016) Relatively cheap gas prices are boosting driving demand, and 2016 remains poised to be a record year for both gasoline consumption and annual miles traveled. Although pump prices moved higher by two cents per gallon on the week and drivers are paying a dime more per gallon to refuel their vehicles on the month, today’s average price of $2.14 per gallon is the lowest for this calendar date since 2009. Consumers continue to save on the year, with today’s average discounted by 39 cents per gallon compared to this same date last year.

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As we enter the summer driving season all eyes will focus on whether refiners can keep pace with the expected increase in demand.  Gasoline demand continues to surpass 2015 year-to-date levels, and as more drivers take to the roads, refiners will work to increase gasoline production to levels that meet this higher demand. This likely means another higher-than-normal year of refinery runs, which can put additional strain on refinery equipment and overall operations. In preparation for the busy summer driving season, a number of refineries are reportedly ramping up production and keeping a close eye on their utilization rates.  Barring any unforeseen challenges in supply and refinery production, drivers are expected to pay some of the lowest prices for the summer months in more than a decade.

California ($2.77) and Hawaii ($2.58) lead the market and are the only two states with averages above $2.50 per gallon. Gasoline production in the region reportedly fell week-over-week, which may be a contributing factor to prices in the region remaining some of the highest in the nation. Nevada ($2.45), Washington ($2.34) and Pennsylvania ($2.32) join in the rankings as the nation’s top five most expensive markets for retail gasoline. On the other end of the spectrum, consumers in the Gulf Coast states of Texas ($1.90) and Mississippi ($1.91) are paying the nation’s lowest prices at the pump.

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Prices have moved higher on the week in the majority of states (44) and Washington, D.C. Drivers in 10 states are paying a nickel or more per gallon week-over-week, with the largest price increases experienced by consumers in Indiana (+9 cents), West Virginia (+9 cents) and Utah (+8 cents). Averages are down in six states over this same period, and motorists in Minnesota (-4 cents), and Hawaii (-3 cents) are saving the most at the pump versus one week ago.

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Drivers in the vast majority of states (49) are paying more to refuel their vehicles compared to a month ago. Retail averages are up a nickel or more in 39 states and Washington, D.C. on the month and consumers in 23 states and Washington, D.C. have seen prices jump double digits over this same period. The largest monthly increases in prices have been experienced by drivers in Utah (+32 cents) Indiana (+23 cents) and Ohio (+22 cents). Hawaii is the only state outside of this trend of monthly increases with its average down by fractions of a penny.

Gas prices are discounted in every state and Washington, D.C. by at least a quarter per gallon versus one year ago, largely due to lower crude oil prices and minimal disruptions in supply.  The most dramatic yearly savings are seen in the Western states of Alaska (-72 cents), Oregon (-56 cents), California (-55 cents) and Hawaii (-51 cents), which typically lead the market with the nation’s highest averages at the pump.

The global oil market is at a crossroads and it is a mystery as to where oil prices might head going forward. Market fundamentals continue to point to extreme oversupply, though expectations of global demand growth or production cuts by major oil producers could influence crude oil prices higher.  Geopolitical factors, such as the recent oil strike in Kuwait helped push crude oil to 2016 highs late last week, also will continue to influence prices in unexpected ways.

According to the U.S. EIA, domestic production declined for yet another week, and the U.S. oil rig count also fell for the fifth consecutive week. However, it is important to note that output is falling at a slow pace and is likely to bounce back to previous levels should prices rebound.  As a result of this dynamic, the global oil market is expected to remain well supplied, keeping the price at the pump relatively low compared to previous years.

At the close of Friday’s formal trading session on the NYMEX, WTI settled at a 2016 high and was up 55 cents at $43.73 per barrel.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Michael Green Contact Tile(WASHINGTON) Record-high fuel demand, declining refinery production and rising oil costs have pushed the national average price of gas to $2.11 per gallon. Average gas prices have increased seven cents per gallon on the week and prices are up 45 out of the past 55 days for a total of 41 cents per gallon. Despite the recent increases, pump prices are down 33 cents per gallon compared to this same date last year.

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Prices may move higher during the second quarter of the year in select regional markets due to intermittent supply challenges and increased demand for gasoline. The relatively lower price for gasoline is also reportedly prompting more drivers to take to the roads, and the U.S. EIA’s weekly estimates on gasoline consumption are approaching levels typical for the summer months. This increase in driving may put pressure on local gasoline markets and cause prices to move higher if demand outpaces the available supply of gasoline. However, consumers remain poised to benefit from substantial comparative savings as we enter the busy summer driving season, and it is likely that most drivers will pay the cheapest summertime prices in 12 years.

Drivers on the West Coast are paying some of the nation’s highest averages at the pump, and prices have risen as refineries work to meet growing demand. California ($2.78) and Hawaii ($2.60) lead the market and remain the only two states posting retail averages above $2.50. Nevada ($2.45), Washington ($2.32) and Alaska ($2.31) round out the rankings as the nation’s top five most expensive markets for gasoline. The Gulf Coast states of Mississippi ($1.89) and Louisiana ($1.89) are nation’s least expensive markets, and prices in a total of 13 states remain below the $2 per gallon benchmark.

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Consumers in the vast majority of states (49) are paying more at the pump versus one week ago. Pump prices are up by a nickel per gallon or more in 38 states and Washington, D.C. over this period, with the largest jumps occurring in the Midwestern states of Minnesota (+14 cents), Kentucky (+14 cents), Illinois (+14 cents) and Michigan (+12 cents). The latest data from the region points to refinery production dropping to a 2016 low, largely attributed to a number of refineries running at reduced rates due to ongoing and unplanned maintenance. Additionally, the region’s crude oil supply was temporarily reduced as a result of the Keystone pipeline being shut down following a recent leak. In the near term, gas prices could fluctuate in the region as the market seeks balance. Hawaii is the only state to buck this trend of weekly increase, and prices are down in the state by fractions of a penny week-over-week.

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Retail averages are up nationwide month-over-month, and gas prices in 47 states and Washington, D.C. are up by more than a nickel per gallon over this period. Drivers in more than half of states (32) are paying double digit increases at the pump, with the largest jumps in price experienced by drivers in: Utah (+30 cents), Arizona (+26 cents), New Jersey (+26 cents), Connecticut (+26 cents) and Massachusetts (+25 cents).

Year-over-year discounts in the price of retail gasoline persist, and drivers in every state and Washington, D.C. are benefiting from comparative discounts at the pump. Averages are down by a quarter or more per gallon in 48 states and Washington, D.C., and drivers in Alaska (-68 cents), Oregon (-50 cents), Hawaii (-46 cents) and Utah (-46 cents) are saving the most at the pump versus this same date last year.

As largely expected, major oil exporters failed to reach an agreement during the much-anticipated meeting between OPEC and non-OPEC countries over the weekend. Saudi Arabia maintained its previous position not to participate in a production freeze unless all other countries agreed to do the same, and Iran held fast to its word to opt-out of the plan. Attention now turns to other factors that may help bring the market more into balance, including reports and projections of global crude oil demand and any news from the U.S. that may also potentially impact prices.

U.S. domestic production fell to a level unseen since September 2014, and the U.S. oil rig count is at its lowest level since November 2009. Speculation is beginning to surface whether U.S. production may soon decline more significantly, and what if anything this may mean for the global oil market’s current oversupply.

At the close of Friday’s formal trading session on the NYMEX, WTI was down $1.14 and settled at $40.36 per barrel. Oil prices have dropped even further today due to the news out of Doha, and this could provide some relief for gas prices.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Gas Prices Drop Slightly on the Week

April 11th, 2016 by AAA

Michael Green Contact Tile(WASHINGTON, April 11, 2016) The national average price of gas declined on the week for the first time in nearly two months, though the drop was only about one cent. Gas prices have moved higher for 28 of the past 35 days, and motorists are paying 13 cents more per gallon on the month. Today’s average of $2.04 per gallon is the lowest for this day since 2009 and average prices are about 35 cents per gallon cheaper than a year ago.

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The national average has spent 19 consecutive days above $2 per gallon, and pump prices are likely to fluctuate as the supply of summer-blend gasoline continues to make its way to terminals nationwide. Refineries are increasing their utilization rates, following the spring maintenance season, and as a result the U.S. EIA reported an increase in domestic gasoline inventories. Just in time for the beginning of the summer driving season, additional supply is also expected to enter the market following the restart of ExxonMobil’s Torrance, Calif. refinery and the gasoline market is poised to be well supplied as we enter the busy summer driving season.  Barring any major disruptions or shortages in supply, the above factors may keep pump prices relatively steady in the coming weeks.

California ($2.77) and Hawaii ($2.61) are the only two states with averages above the $2.50 per gallon benchmark. Motorists in the neighboring states of Nevada ($2.44), Washington ($2.29), and Alaska ($2.27) are paying some of the  nations’s highest prices at the pump and round out the top five most expensive markets for retail gasoline. On the other end of the spectrum, retail averages in a total of 21 states are below $2 per gallon and consumers in Missouri ($1.80) and Oklahoma ($1.82) are paying nation’s lowest prices for gas.

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Gas prices have remained relatively steady on the week, moving by +/- 3 cents per gallon in 45 states and Washington, D.C.  Pump prices in the majority of states (32) are down week-over-week, with the largest savings seen by drivers in Michigan (-8 cents) and Missouri (-6 cents). Prices have moved higher on the week in 18 states and Washington, D.C., and motorists in Utah (+10 cents) and Indiana (+5 cents) are paying the largest weekly increases in the price at the pump.

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Drivers in the vast majority of states (48) are paying more to refuel their vehicles month-over-month. Retail averages are up double-digits in 29 states and Washington, D.C. over this same period with the biggest jumps in Arizona (+44 cents), Nevada (+28 cents) and Utah (+27 cents). Minnesota (-7 cents) and Missouri (-5 cents) are the only two states to buck this trend, and averages are down in both of these states on the month by a nickel or more per gallon.

Despite pump prices remaining above $2 per gallon, yearly discounts persist for consumers in every state and Washington, D.C. Gas prices in the vast majority of states (48) are down by more than quarter per gallon, with drivers in Alaska (-67 cents), Oregon (-52 cents) and Hawaii (-49 cents) benefitting from the largest year-over-year savings in the price of retail gasoline.

Unclear expectations about future supply and demand continue to influence global oil prices. OPEC is meeting to discuss production issues on April 17, though most market watchers question if the countries will agree on a freeze or whether it will even be effective. A potential freeze in production could cause prices to increase temporarily, though it is difficult to see how it will reduce the market’s extreme oversupply.

The latest data from the U.S. EIA points to a drop in domestic production, which reportedly fell to its lowest point since October 2014. Additionally, domestic crude oil inventories experienced their largest weekly decrease since January, attributed to increases in the refinery utilization rate and the shutdown of the Keystone pipeline due to a leak, which reduced crude oil supply. Both factors are believed to have caused WTI to rally to close out the week.

At the close of Friday’s formal trading session on the NYMEX, WTI was up $2.46 and settled at $39.72 per barrel. This represents one of the strongest settlements for 2016 and is the highest weekly gain since early March.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Michael Green Contact Tile(WASHINGTON, April 4, 2016) Despite increasing for 36 of the past 41 days, the national average is at its lowest price point for this same date since 2009. Today’s average price of $2.06 per gallon represents an increase of two cents on the week and 24 cents on the month. Pump prices continue to reflect year-over-year discounts, and drivers are saving 34 cents per gallon versus this same date last year.

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The switchover to summer-blend gasoline at refineries has already taken place, and this special blend of fuel has begun to make its way to fuel terminals in many parts of the country, though it can take a few weeks because fuel travels through pipelines at four miles per hour. This blend costs more to produce, and drivers likely will notice higher prices in areas required to use this fuel, such as in the Northeast, over the next few weeks. In addition, continued refinery maintenance and rising demand may also lead to higher prices in some areas. Although prices are expected to move higher leading into the summer driving season, consumers will likely continue to benefit from comparative savings due to the overall abundance of supply and the lower price for crude oil.

Drivers in California ($2.79) are paying the nation’s highest averages at the pump. Gas prices in the Golden State have moved higher due to regional supply challenges, though these issues reportedly have begun to ease, and prices in the region may soon recover as a result. Regional neighbors Hawaii ($2.60), Nevada ($2.45), Washington ($2.30) and Alaska ($2.27) join in the rankings as the nation’s top five most expensive markets for gas. Averages in nearly half (23) of the states are below the $2 per gallon threshold, and motorists in Oklahoma ($1.82) and South Carolina ($1.85) are paying the lowest prices at the pump.

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Prices have moved by more than a nickel per gallon on both ends of the spectrum week-over-week, and gas prices are likely to continue to fluctuate in the near term due to imbalances between supply and demand. Gas prices are up in the majority of states (37) on the week, with the largest increases in price seen by drivers in Michigan (+11 cents), Arizona (+8 cents) and Utah (+6 cents). Prices have fallen in 13 states over this same period, and drivers in Minnesota (-6 cents), Oklahoma (-4 cents) and Iowa (-3 cents) are experiencing the largest weekly savings in the price of gasoline.

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Prices are up by more than a nickel per gallon for the month in the vast majority of states (48), and consumers in 45 states and Washington, D.C. are paying double-digit premiums month-over-month. Averages are up by a quarter or more per gallon on the month in 21 states, with the biggest jumps in price occurring in states west of the Rockies: Arizona (+57 cents), Nevada (+42 cents) and California (+35 cents).

Drivers in every state continue to save on gasoline compared to a year ago. Gas prices in 46 states and Washington, D.C. are down by more than a quarter per gallon for the year, with the largest discounts seen by motorists in Alaska (-64 cents), Oregon (-54 cents) and Hawaii (-53 cents).

Oversupply continues to characterize the global oil market, and prospects for an agreement between OPEC and non-OPEC countries to freeze output seem increasingly unlikely as both Iran and Russia significantly increased production last month. Iranian oil is returning to market following the removal of sanctions and the country has said it will not freeze production until it regains market share. Supply and demand fundamentals continue to point to a bearish market for crude oil, and both Brent and West Texas Intermediate closed out the week at lows unseen since mid- and early-March.

Market watchers continue to monitor news of U.S. production, which according to the latest data from the EIA, fell for the fourth consecutive week. Additionally, the number of oil rigs operating in the U.S. declined by 10. Neither factor has yet to translate to movements in the price of crude oil, likely due to the markets extreme oversupply.

WTI closed out Friday’s formal trading session on the NYMEX down $1.55 and settled at $36.79 per barrel.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Michael Green Contact Tile

Fuel Savings Approach $10 Billion Compared to the Same Period Last Year Says AAA

WASHINGTON, D.C. (March 31, 2016) – Americans paid the cheapest quarterly gas prices in twelve years during the first three months of 2016, according to AAA. Americans have saved nearly $10 billion on gas so far this year compared to the same period in 2015. The national average price of gas during the first quarter was $1.86 per gallon, making it the cheapest quarter for gasoline since January-March 2004. Gas prices are expected to remain relatively low compared to recent years, though average prices could rise another 25 cents per gallon by Memorial Day.

The national average price of gas today is $2.06 per gallon, which is the lowest average heading into April since 2009.

  • About 59 percent of U.S. stations are selling gas for less than $2 per gallon today, while the most common price across the country is $1.999 per gallon.
  • Average U.S. gas prices are about 36 cents per gallon cheaper than a year ago.

Americans have saved nearly $10 billion (13 percent) on gasoline so far this year compared to the same period in 2015, which is about $45 per licensed driver.

  • This year’s savings are in addition to the $120 billion that Americans saved over the course of 2015 compared to the previous year, which was about $565 per licensed driver.
  • Today’s gas price savings are even more significant when compared to a few years ago. For example, the most expensive first quarter ever was in 2012, when prices averaged $3.58 per gallon. In comparison to that quarter, Americans have saved about $50 billion or $240 per licensed driver during the first three months this year.

Gas prices are significantly cheaper than in recent years due to relatively low oil costs and abundant petroleum supplies.

  • WTI oil prices settled above $38 per barrel yesterday, which is about $70 per barrel lower than the summertime highs in 2014. Every $10 change in the price of crude oil can move gas prices by nearly 25 cents per gallon.
  • Abundant supplies have helped keep prices relatively low this year. For example, commercial crude oil supplies in the United States are about 13 percent higher than a year ago and gasoline supplies are six percent higher, according to EIA estimates.

Lower gas prices have helped motivate Americans to drive at record levels.

  • Americans drove 3.1 trillion miles in 2015, which was an all-time record and 3.5 percent higher than in 2014, according to estimates by the U.S. DOT. The latest estimates indicate that Americans drove 240.7 billion miles in January 2016, which was the most ever for the month.
  • The EIA estimated gasoline consumption at 395 million gallons per day in its latest four-week average, which is about five percent higher than the same period a year ago and the highest for this time of year on record.
  • There is a strong likelihood that road travel will continue to increase this year as long as gas prices remain low and there are no major economic problems.

Gas prices are on the rise nationwide, which is a trend drivers see nearly every spring.

  • The national average price of gas has increased 35 out of the past 37 days for a total of 35 cents per gallon. Gas prices often increase 50 cents per gallon or more in the spring.
  • Most drivers are paying $4-$9 more per gallon to fill up their vehicles on every trip to the gas station today compared to mid-February.
  • Gas prices could rise by another 15-25 cents per gallon in many parts of the country by Memorial Day. At those levels, seasonal prices would still be less expensive than in recent years.

Gas prices are rising due to higher oil costs, increased demand, refinery maintenance and the switchover to summer-blend gasoline.

  • Oil prices have increased by more than $10 per barrel since early February, which has made it more expensive to produce gasoline.
  • Demand has increased this spring as the weather has turned warmer, and this increase comes at the same time that many refineries conduct maintenance to prepare for the summer driving season. Refineries conducting maintenance produce less fuel, which can lead to higher prices.
  • The EPA mandates gas stations in some parts of the country sell summer-blend gasoline from June 1-September 15 for air-quality reasons. Refineries begin producing summer-blend gasoline by April 1, and this fuel costs more to produce.

Average state gas prices vary by 95 cents per gallon across the country.

  • The five states with the cheapest average gas prices include Missouri ($1.83), New Jersey ($1.84), Oklahoma ($1.85), South Carolina ($1.87) and Alabama ($1.87). States with cheaper prices have relatively low gas taxes and abundant fuel supplies.
  • The five states with the most expensive prices include California ($2.79), Hawaii ($2.59), Nevada ($2.44), Washington ($2.29) and Alaska ($2.29). Gas prices in California and in neighboring states are among the highest in the country due to continued refinery problems that have limited regional fuel production and supplies.

As North America’s largest motoring and leisure travel organization, AAA provides more than 55 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.  Motorists can map a route, identify gas prices, find discounts, book a hotel and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile.

Michael Green Contact Tile(WASHINGTON, March 28, 2016) The national average price of gas climbed above $2 per gallon last Thursday for the first time in 2016, and average prices have increased for 21 consecutive days. Today’s average price of $2.04 per gallon is up six cents per gallon on the week and 30 cents per gallon for the month. Despite the recent increase, average gas prices remain 39 cents per gallon less than a year ago.

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Many refineries are conducting seasonal maintenance, which has led to a decline in fuel production. In addition, refineries are preparing to produce summer-blend gasoline. This blend of gasoline is mandated by the EPA and is less prone to evaporate and contribute to air pollution in warmer temperatures. Retailers in many parts of the country are required to sell this summer-blend of gasoline by June 1, and leading up to this deadline, refineries and storage facilities also adjust their supply in order to comply with the regulation. During the months of March and April, refineries will begin the transition to producing and storing this blend of gasoline, and often “sell-off” or “draw-down” on their existing supply of gasoline in order to make room for this seasonal blend of gas. This reduction in supply often leads to higher prices at the pump, because during this transition period, demand for gasoline generally begins to increase as warmer temperatures motivate more drivers to take to the roads. The combination of the above factors generally contributes to rising prices at the pump, leading into the busy summer driving season.

California ($2.77) remains the nation’s most expensive market for retail gasoline, and inventories in the state reportedly fell to an 11-week low due to ongoing refinery challenges and increased demand. Consumers in second-place Hawaii ($2.56) are paying 21 cents per gallon less than the market leader, and regional neighbors Nevada ($2.41), Alaska ($2.29) and Washington ($2.28) round out the top five most expensive markets for gas. On the other end of the spectrum, New Jersey ($1.83) and Missouri ($1.85) are the nation’s least expensive markets.

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Retail averages in the vast majority of states (47) are higher on the week, and consumers in 28 states and Washington, D.C. are paying a nickel or more per gallon at the pump versus one week ago. Gas prices are up double digits in five states with the largest weekly increases experienced by drivers in Arizona (+14 cents), New Hampshire (+11 cents), Massachusetts (+11 cents) and Connecticut (+11 cents).  Prices have fallen over this same period in three states, but in less dramatic fashion. Averages are down on the week in Michigan (-6 cents), North Dakota (fractions of a penny), and Minnesota (fractions of a penny).

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With the exception of Hawaii (-1 cents), consumers nationwide are paying more to refuel their vehicles month-over-month. The average price at the pump is up by a dime or more per gallon in the vast majority of states (48) and Washington, D.C. on the month, and motorists in 35 states are paying averages that are up by a quarter or more per gallon over this same period. The biggest jumps in price have been in states west of the Rockies: Arizona (+52 cents), Nevada (+44 cents), and California (+40 cents).

Despite rising averages, consumers nationwide continue to see yearly savings at the pump. Drivers in 47 states and Washington, D.C. are saving more than a quarter per gallon when they refuel their vehicles, and averages are down more than 50 cents in a total of six states compared to this same date last year. Year-over-year, the largest savings in the price of gas are in: Alaska (-63 cents), Illinois (-61 cents) and Oregon (-59 cents).

Varying expectations of future supply and demand have contributed to the global oil market’s overall volatility. As a result, the global price of crude oil continues to seesaw on news related to potential market influencers, and many traders are focused on the upcoming meeting between the Organization of the Petroleum Exporting Countries and non-OPEC producers scheduled for April 17. An overall bearish sentiment persists and market fundamentals continue to point to oversupply. Despite ongoing talks, there is persistent skepticism regarding the prospects for reductions or freezes in production, and crude oil prices are likely to continue to remain volatile in the near-term.

West Texas Intermediate crude oil opened the week trading a bit higher, following a week of fluctuating prices due to news of increasing crude oil inventories balanced against reports of falling rig counts in the United States. The NYMEX was closed on Friday in observance of Good Friday, and WTI closed out Thursday’s formal trading sesson on the NYMEX down 33 cents and settled at $39.46 per barrel.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Michael Green Contact Tile(WASHINGTON, March 21, 2016) Pump prices have climbed higher for two straight weeks, and the national average price of gas may soon climb above $2 per gallon for the first time this year. Gas prices have increased largely due to seasonal increases in fuel demand and reduced production as some refineries conduct maintenance.  Today’s average price of $1.98 per gallon is a the highest daily mark since January, and drivers are paying a nickel more per gallon than a week ago and 27 cents more per than a month ago. Despite retail averages rising, consumers continue to benefit from yearly savings and prices remain 44 cents per gallon cheaper than a year ago.

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Gas prices tend to reach the highest levels of the year in the spring before the summer driving season. As the weather turns warmer and days grow longer, people tend to drive more, which results in increased demand. Many families also take spring break road trips this time of year, which means they may use more gasoline than normal. This increase in demand comes at the same time that many refineries conduct maintenance to prepare equipment for the busy summer driving season, which leads to a temporary decline in fuel production. In addition, refineries also begin to transition to summer-blend gasoline, which is more expensive to produce, but mandated due to the fact that it is causes less air pollution at warmer temperatures. These factors typically lead to higher gas prices this time of year and have helped push prices higher in recent weeks.

Drivers on the West Coast are currently experiencing a surge in the price at the pump due to the imbalance between supply and demand, and averages are up double-digits on the week in select markets.

ExxonMobil’s Torrance, Calif. refinery experienced a power outage and is reportedly delaying the restart of its gasoline production equipment. The refinery produces about 10 percent of California’s gasoline, has been operating at reduced capacity since February 2015, and this additional reduction in supply is contributing factor to prices moving higher in the region.

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For the second consecutive week, California ($2.68) leads the nation with the highest average price for retail gasoline. Consumers in the Golden State are paying 13 cents per gallon more than second-place Hawaii ($2.55), and gas prices could move higher in the near term due to refinery issues. Nevada ($2.32), Washington ($2.24) and Alaska ($2.22) round out the top five most expensive markets. The nation’s least expensive market for retail gasoline is New Jersey ($1.73), which is also the only state with an average price below $1.75 per gallon.

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Consumers in the vast majority of states (45) and Washington, D.C. are paying more at the pump versus one week ago. Retail averages in 19 states are up by a nickel or more per gallon week-over-week, and gas prices in Arizona (+19 cents), Nevada (+12 cents) and Florida (+11 cents) have climbed higher by more than a dime per gallon over this same period. Averages are down in five states on the week, but have fallen in a less dramatic fashion. Motorists in Missouri (-4 cents), Illinois (-3 cents), Minnesota (-2 cents), Ohio (-1 cents) and Indiana (fractions of a penny) are experiencing weekly savings at the pump, but prices have fallen by less than a nickel per gallon in each of these states.

With the exception of Hawaii (-4 cents) and Alaska (-4 cents), two of the nation’s most expensive markets, drivers nationwide have seen prices rise by more than a nickel per gallon compared to a month ago. Gas prices are up double-digits in 43 states and Washington, D.C. on the month, and consumers in 26 states have seen prices climb by a quarter per gallon or more over this same period. Drivers in the Midwestern states of Nebraska (+41 cents), Kentucky (+40 cents), Kansas (+38 cents) and Iowa (+38 cents) are experiencing the largest monthly increases in price due to a significant decline in regional production as local refineries either conduct maintenance or cut back on production due to low margins.

Consumers in every state and Washington, D.C. are benefiting from yearly savings at the pump of more than a quarter per gallon. Averages in 13 states are down 50 cents or more year-over-year, with the largest savings in states west of the Rockies: Alaska (-71 cents), Oregon (-67 cents), California (-60 cents) and Utah (-60 cents).

For the first time in 13 weeks, the U.S. oil rig count increased, which raises the possibility of continued strong production in the United States despite relatively low crude oil prices. Both Brent and West Texas Intermediate crude oil closed last week with gains, but each benchmark moved lower on Friday as oversupply concerns again come into focus. Global oil prices are expected to continue to move in response to ongoing discussions by some of the world’s top producers to potentially freeze production, which could be finalized at a meeting scheduled for April 17. The U.S. dollar is also in focus after posting its largest two-day loss in value since 2009. All eyes are on the Federal Reserve to see if corrective action is taken to help boost its value. A weaker dollar makes oil relatively less expensive for investors holding other currencies, which could help offset some of the market’s losses.

At the close of Friday’s formal trading session on the NYMEX, WTI was down 76 cents to settle at $39.44 per barrel.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Michael Green Contact Tile(WASHINGTON, March 14, 2016) Gas prices have jumped by 12 cents per gallon this week, which is the largest weekly increase since early March 2015. Prices increased by double digits due to a decline in gasoline supplies, relatively strong demand and continued refinery maintenance. The national average has moved higher for 18 of the past 20 days for a total of 23 cents per gallon, and today’s price of $1.94 per gallon is the highest average in two months. Relatively low oil costs continue to provide drivers with year-over-year savings at the pump, and consumers are saving 50 cents per gallon compared to this same date last year.

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Prices typically move higher at this time of year as gasoline demand begins to increase and refineries conduct seasonal maintenance. This year’s refinery maintenance season is characterized by lower-than-expected prices for crude oil and ample supplies, which should help keep pump prices relatively low compared to recent years. Prices in some regions may move significantly higher in the near term due to fluctuations in local supply and demand associated with continued maintenance and preparations for summer-blend gasoline in advance of the June 1 deadline for retail facilities to sell the cleaner blend.

California ($2.59) regained its spot as the nation’s most expensive market for retail gasoline, and drivers in the state are paying a nickel more per gallon than second-place Hawaii ($2.54). Prices in the state reportedly moved higher due to a significant drawdown in supply, coupled with increased gasoline demand, which is typical for this time of year. Regional neighbors Nevada ($2.20), Washington ($2.18) and Alaska ($2.18) join in the rankings as the top five most expensive markets for gas. New Jersey ($1.69) and South Carolina ($1.70) are the nation’s least expensive markets for retail gasoline, and a total of six states are posting prices at or below $1.75, which is14 states less than a week ago.

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Drivers nationwide are paying more to refuel their vehicles than one week ago and prices in 47 states and Washington, D.C. are up by a nickel or more per gallon. Averages are up by double digits in 29 states and Washington, D.C. over this period, with the largest weekly increases in Illinois (+18 cents), Missouri (+18 cents), Virginia (+17 cents) and Kentucky (+17 cents).

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Retail averages in the vast majority of states (47) are up on the month, and consumers in 35 states have seen prices increase by a dime or more. The biggest jumps in price are seen in the Midwestern states of Minnesota (+54 cents), Illinois (+50 cents), Oklahoma (+48 cents) and Kansas (+47 cents), and averages in a total of 16 states are up by more than a quarter per gallon month-over-month. Alaska (-13 cents), Hawaii (-8 cents) and Idaho (-2 cents) are the only three states where drivers are experiencing savings at the pump versus one month ago.

Yearly discounts persist and motorists nationwide are saving more than a quarter per gallon for gasoline. Gas prices are down by 50 cents or more in 22 states and Washington, D.C., with the largest year-over-year savings seen in California (-79 cents), Oregon (-79 cents), Alaska (-74 cents) and Arizona (-73 cents). Retail averages on the West Coast moved noticeably higher this time last year due to a major refinery outage, which has led to a significant increase in year-over-year savings for the region.

Projected reductions in global oil supply and Iran’s slower-than-expected return to the global oil market reportedly contributed to both Brent and West Texas Intermediate closing out the week at 2016 highs. However, oil prices opened this week’s trading session lower on the news that Iran plans to increase oil production significantly. Conversations about when and if the market has reached its bottom persist, and market fundamentals continue to point to supply outpacing demand, which could cause prices to once again turn lower.

The latest data shows that the U.S. oil rig count fell to 386 rigs last week, marking 12 straight weeks of rig-count declines. According to the U.S. EIA, domestic production declined from year-ago levels for the first time in more than four years, largely due to lower-than-expected crude oil prices. Despite this reduction in production, the agency lowered its projections for crude oil prices because domestic production remains more resilient than expected.

At the close of Friday’s formal trading session on the NYMEX, WTI was up 66 cents and settled at $38.40 per barrel, which marked the fourth straight week of oil price increases.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Michael Green Contact Tile(WASHINGTON, March 7, 2016) The national average price jumped six cents on the week, the largest one week increase since the beginning of the year. Today’s average price is $1.81 per gallon, and the national average is likely to continue to move higher due to spring turnaround activity and reductions in supply in select regional markets. Drivers are paying six cents more per gallon to refuel their vehicles versus one month ago; however, significant yearly discounts remain and pump prices are down 65 cents on the year.

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In advance of the busy summer driving season, refineries typically undergo scheduled maintenance during the first two quarters of the year. This year’s spring turnaround has been characterized by lower-than-expected prices, which has prompted a number of refineries to adjust their maintenance schedules and/or cut production in response to abundant supplies. Refineries are also reportedly beginning to reduce production in preparation for the seasonal switchover to summer-blend gasoline. Prices generally move during this time of year and the impact of this shift in schedule, combined with other seasonal factors, may cause prices to swing at the regional level at a faster rate than normal as supply and demand seek balance. The lower price of crude oil and abundant supplies should keep a ceiling on how high gas prices move in the coming months, and barring any unexpected disruptions in supply, drivers should continue to benefit from relative savings at the pump.

Pump prices are above the $2 per gallon benchmark in a total of five states, all located on the West Coast where averages tend to lead the market. Motorists in Hawaii ($2.54) are paying the nation’s highest averages for gasoline, followed by regional neighbors California ($2.45) Alaska ($2.16) Washington ($2.10) and Nevada ($2.04). A total of 20 states are posting gas prices at or below $1.75 per gallon, which is down by 11 states in comparison to last week’s report. Arizona ($1.55) and South Carolina ($1.55) are the nation’s least expensive markets for retail gasoline.

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Gas prices generally moved higher on the week, largely due to the spring refinery maintenance season being underway in many parts of the country. Pump prices are up week-over-week in a total of 48 states and consumers in 28 states are paying a nickel or more per gallon to refuel their vehicles versus one week ago. Averages climbed higher by double-digits in eight states over this same period, with Michigan (+14 cents), Colorado (+12 cents), West Virginia (+11 cents) and Kansas (+11 cents) posting the largest weekly increases in price. Outside of this trend, drivers in three states are paying less on the week: Alaska (-5 cents), Hawaii (-3 cents) and Washington, D.C. (fractions of a penny).

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Averages moved by double-digits on both ends of the spectrum month-over-month. Retail averages are up on the month in 26 states, with the biggest jumps in price occurring in the Midwestern states of Michigan (+34 cents), Minnesota (+34 cents), Ohio (+33 cents) and Indiana (+28 cents). Prices are down in 24 states and Washington, D.C. over this same period, with the largest savings at the pump experienced by drivers in Arizona (-22 cents), Alaska (-20 cents) and Nevada (-17 cents).

Year-over-year drivers nationwide are experiencing savings at the pump of more than a quarter per gallon. Pump prices are down by more than 50 cents per gallon in 44 states and Washington, D.C. in comparison to this same date last year. The largest yearly savings are seen in California (-98 cents), Arizona (-91 cents), Oregon (-90 cents) and Nevada (-83 cents), where prices are down by more than 75 cents per gallon at the pump over this same period. This time last year California was grappling with a major outage at an ExxonMobil refinery in Torrance, CA refinery, and prices were sent noticeably higher in the region due to supply shortages.

Both global oil benchmarks, Brent and WTI, closed out the week posting gains due to speculations that the lower price environment was beginning to take its toll on global oil production. Market fundamentals are starting to point toward supply and demand coming more into balance in the nearer-term, despite a considerable amount of skepticism remaining around the potential deal between Nigeria, Russia and other production countries to freeze output in an effort to help stabilize prices.

Reports of a strengthening U.S. economy and a falling U.S. rig count helped to boost the domestic benchmark. At the close of Friday’s formal trading session on the NYMEX, WTI was up $1.35 and settled at $35.92 per barrel. This represents WTI’s highest settlement in two months.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

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