Posts Tagged ‘gas price’

Tamra JohnsonGas prices are on the move, reaching an average price of $2.33 per gallon for regular unleaded gasoline. Today’s price is four cents more than a week ago, one cent more compared to one month ago and 27 cents more than the same date last year. National gas prices have increased six of the last seven days. Although the increase in prices has been moderate, it is possible this trend could continue as refinery maintenance wraps up, more expensive summer-blend gasoline becomes available and driving demand increases this spring.  

Quick Stats

  • The nation’s top ten least expensive markets are: South Carolina ($2.04), Tennessee ($2.08), Mississippi ($2.08), Alabama ($2.09), Oklahoma ($2.10), Arkansas ($2.10), Missouri ($2.11), Louisiana ($2.12), Virginia ($2.13) and Texas ($2.15). 
  • The nation’s top ten markets with the largest weekly increases include: Ohio (+18 cents), Michigan (+16 cents), Indiana (+14 cents), Illinois (+11 cents), Wisconsin (+7 cents), Delaware (+7 cents), West Virginia (+6 cents), Kentucky (+5 cents), Oregon (+5 cents) and Georgia (+5 cents).

 

West Coast

Gas prices on the West Coast remain the highest in the country, with six states in the region topping the list of most expensive U.S. markets: Hawaii ($3.05), California ($2.98), Washington ($2.86), Alaska ($2.78), Oregon ($2.72) and Nevada ($2.66). Prices in the Northwest and California will continue to rise in the coming weeks due to refinery maintenance.

BP started planned maintenance at its 236,000-b/d Cherry Point refinery in Ferndale, Washington, last week, while PBF Energy restarted the hydrotreater unit at its 157,800-b/d refinery in Torrance, California, due to unplanned flaring last Monday. This week, the refinery begins major maintenance work which is expected to last 45-55 days and will likely tighten supply and increase California gas prices. Today, BP is also shutting down operations on its Olympic Pipeline until April 10 for planned maintenance. The shutdown will temporarily impact shipments of gasoline in the northern part of the region.

Rockies

Drivers in the Rockies are among the only ones in the nation to see moderate price declines. Prices in the region are often geographically insulated from movement tied to global crude oil prices and have generally been among the more stable in the nation.

Great Lakes and Central States

The Great Lakes and Central States are currently switching from winter-blend to summer-blend gasoline and drivers are seeing significant increases at the pump, with Ohio (+18 cents), Michigan (+16 cents), Indiana (+14 cents), Illinois (+11 cents), Wisconsin (+7 cents) and Kentucky (+5 cents) landing on the list of top 10 weekly increases.

Unplanned mechanical repairs and pipeline issues at Valero’s 172,000-b/d McKee and 103,000-b/d Houston refineries in the Texas Panhandle are impacting delivery and tightening supply in the Midwest region.

South and Southeast

Markets in the South and Southeast continue to post some of the lowest prices for retail gasoline in the nation, including South Carolina ($2.04), Tennessee ($2.08), Mississippi ($2.08), Alabama ($2.09), Louisiana ($2.12) and Texas ($2.15).

ExxonMobil’s 584,000-b/d Baytown, Texas refinery experienced operational issues last week due to severe weather. Valero also reports pipeline issues and unplanned mechanical repairs at both its 172,000-b/d McKee and 103,000-b/d Houston refineries, which has tightened supply in the Dallas area. OPIS reports that during past fuel-supply problems, the market pulled barrels of gasoline from Tyler, Texas and can also receive supply via pipeline from Corpus Christi.

Mid-Atlantic and Northeast

Prices in much of the Mid-Atlantic and Northeast regions have followed the national average the past week with Delaware (+7 cents), West Virginia (+6 cents) and Maryland (+4 cents), all landing on the list of largest weekly increases. The latest report from the U.S. Energy Information Administration (EIA) shows that regional gasoline storage levels dropped by 2.6 million bbl, the largest decline in the country. The region will switch from winter-blend to summer-blend gasoline by April 10 and drivers will continue to see increases at the pump.

Oil Market Dynamics

This morning, the market saw a bump following reports that Iraq plans to increase its production cut compliance as a part of OPEC’s output agreement. This announcement furthered speculation that OPEC and non-OPEC producers may extend their agreement beyond the original six-month deadline of June. The oil reduction deal was brokered last fall in an attempt to rebalance the global oil supply and boost the price of crude oil. While the agreement has lifted the price of crude oil to $50 per barrel, it has also encouraged U.S. producers to invest and drill more. Oil service company Baker Hughes reported that the U.S. increased its rig count by 10 last week, bringing the total to 662. Traders will keep a close eye on discussions between OPEC and non-OPEC producers and any decisions they make regarding further production cuts through the remainder of 2017.  At the close of Friday’s formal trading session on the NYMEX, WTI was up 25 cents to settle at $50.60 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.

Tamra JohnsonNew AAA Survey Reveals Impact of Rising Gas Prices on Consumers’ Lifestyle

WASHINGTON, D.C. (Mar. 28, 2017) – A new AAA survey reveals that nearly a quarter of consumers believe the price at the pump is already too high. AAA projects the national average for a gallon of gasoline to increase 40 cents this summer, peaking near $2.70. To offset gas price increases, more than 70 percent of consumers say they would make everyday lifestyle or driving habit changes. The top five changes drivers would make include:

Additional Resources

  • Infographic 1 | 2 | 3
  • Combining errands or trips
  • Driving less
  • Reducing shopping or dining out
  • Delaying major purchases
  • Carpooling

However, not everyone will jump to make a change. The survey found that younger Americans (18-34) are more tolerant of higher prices.

“Higher gas prices are already influencing the travel industry,” said Bill Sutherland, AAA senior vice president of Travel and Publishing. “The good news is people are still planning to hit the road. With nearly 80 percent of family travelers planning a road trip this year, higher gas prices are making shorter trips to national parks and theme parks the most desired travel destinations.”

During April, Americans across the country will start to see gas prices begin to climb as the industry wraps up spring maintenance and completes the switchover to summer-blend gasoline. Over the years, public opinion for whether a gallon of gasoline would be too much or too cheap has fluctuated as much as the price itself.

  • When gas prices are above the $3.00 benchmark (as they were in 2013 and 2014), most Americans believe prices should be six percent lower.
  • When gas prices are below the $3.00 benchmark (as they were in 2015 and 2016), most Americans believe a 25 percent increase is too high.

This report presents the findings of a telephone survey conducted among two national probability samples (landline only and cell phone), which, when combined, consists of 1,017 adults, 510 men and 507 women, 18 years of age and older, living in the continental United States. Interviewing for this survey was completed on February 2-5, 2017. 517 interviews were from the landline sample and 500 interviews from the cell phone sample. This study has an average statistical error of ±3.1 percent at the 95 percent confidence level for all U.S. adults.

As North America’s largest motoring and leisure travel organization, AAA provides more than 57 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.

Tamra Johnson

Today’s national average price at the pump is $2.29 per gallon.  This is the same price as compared to one month ago, but just fractions of a penny below one week ago and 25 cents per gallon more than the same date last year.  The average pump price has decreased nine of the past 10 days.

On Sunday, a joint committee of ministers representing OPEC and non-OPEC countries asked the OPEC Secretariat to examine the market and consider a possible production cut extension beyond the original six- month agreement. Last year, OPEC and non-OPEC countries agreed to cut their output by 1.8 million barrels a day for six months starting in January 2017. The Secretariat is expected to provide a recommendation in April, well before the current agreement is set to expire in June.

Quick Stats

  • The nation’s markets that have seen the largest yearly increases in gas prices are: Washington (+56 cents), Utah (+51 cents), Oregon (+50 cents), Hawaii (+49 cents), Alaska (+49 cents), Idaho (+48 cents), New Jersey (+46 cents), Montana (+38 cents), New Mexico (+34 cents) and Pennsylvania (+34 cents).
  • The nation’s markets that have the least expensive weekly gas prices include: South Carolina ($2.02), Tennessee ($2.04), Alabama ($2.05), Mississippi ($2.05), Oklahoma ($2.06), Missouri ($2.07) Arkansas ($2.07), Virginia ($2.10), Louisiana ($2.10) and Texas ($2.11).

West Coast

Prices on the West Coast remain flat, with six states topping the list of most expensive markets: Hawaii ($3.07), California ($2.98), Washington ($2.84), Alaska ($2.79), Oregon ($2.67) and Nevada ($2.65). The West Coast is also home to some of the largest year over year price increases: Washington (+56 cents), Oregon (+50 cents), Hawaii (+49 cents) and Alaska (+49 cents). The latest Energy Information Administration (EIA) report shows that despite a nearly five percent increase in refinery utilization, gasoline inventories in the region dropped 428,000 bbl to 28.599 million bbl last week.

Rockies

Drivers in the Rockies have not seen much movement at the pump this week, with prices moving +/- 2 cents or less in most markets. The region historically has been among the more stable in the nation due to its insulated location. However, supply issues resulting from problems on the Wahsatch Pipeline earlier this year has landed Utah (+51 cents), Idaho (+48 cents) and Montana (+38 cents), on the top 10 list of largest yearly increases.

Great Lakes and Central States

Drivers in the Great Lakes and Central regions saw the largest discounts at the pump last week, with seven states topping the list of largest weekly declines: Ohio (-7 cents), Michigan (-7 cents), Indiana (-6 cents), Missouri (-4 cents), Illinois (-3 cents), Iowa (-3 cents) and Kentucky (-2 cents). OPIS reports that the region has been clearing its system of high-RVP gasoline in preparation for the switch to lower RVP summer blend gasoline next month. The switch will mean higher prices at the pump for drivers in both regions.

Mid-Atlantic and Northeast

Prices in much of the Mid-Atlantic and Northeast remain relatively steady on the week with Pennsylvania ($2.48) and Washington D.C. ($2.45) both landing on the list of top 10 most expensive markets. Regional gasoline inventories remain low as the region continues to remove winter-grade gasoline from the system. Pump prices in the region will likely begin to climb around April 10, when gasoline RVP in the New York market makes the official shift to summer-grade blends.

South and Southeast

Drivers in the South and Southeast regions continue to enjoy the lowest prices at the pump with six states landing on the nation’s list of cheapest retail markets: South Carolina ($2.02), Alabama ($2.05), Mississippi ($2.05), Arkansas ($2.07), Louisiana ($2.10) and Texas ($2.11). The latest EIA report shows that regional gasoline inventories remained steady last week while refinery utilization rates increased three percent. OPIS reports that the increases will help stabilize gasoline supply as refineries wrap-up spring maintenance and prepare for the busy summer refining season.

Oil Market Dynamics

Today the market opened posting losses, as traders doubt the ability of OPEC and other major oil producers to rebalance the market. OPEC’s recent announcement to consider extending production cuts follows news from EIA showing a crude oil build of 5 million barrels for the week ending March 17. That increase brings U.S. inventory levels to a total of 533.1 million barrels. Additionally, Baker Hughes’ reports that the U.S. added 21 oil rigs last week, bringing the country’s total rig count to 652.

The combination of OPEC efforts to rebalance the market and increased U.S. production continues to put pressure on crude oil futures, holding prices below $50 a barrel. Next month, market watchers will pay close attention to the OPEC Secretariat’s upcoming recommendations on whether to extend production cuts beyond June. At the close of Friday’s formal trading session on the NYMEX, WTI was up 27 cents to settle at $47.97 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.

Julie Hall

2015 marks the most Independence Day travelers since 2007

ORLANDO, Fla. (June 25, 2015) – AAA projects 41.9 million Americans will journey 50 miles or more from home this Independence Day, the most since 2007 and a 0.7 percent increase from the 41.6 million people who traveled last year. The Independence Day holiday travel period is defined as Wednesday, July 1 to Sunday, July 5.

Additional Resources

“This Independence Day, more people will get in their cars, board airplanes, and take buses, trains and cruise ships to celebrate our nation’s freedom with friends and family,” said Marshall L. Doney, AAA President. “Students all across the nation are also celebrating freedom from homework, making this an ideal time for a family vacation. Independence Day is typically the busiest summer travel holiday for this reason, and more Americans are planning a holiday getaway than any year since 2007.”

Rising income, driven by a strong employment market, is prompting more Americans to take a holiday trip this year. Despite recent seasonal increases, gas prices remain well below year-ago levels, which has helped boost Americans’ disposable income.

“Although some consumers are using their recent savings on gas to pay down debt and save, overall, Americans are planning to travel in record numbers,” continued Doney. “Independence Day gas prices are expected to be the lowest in at least five years, a welcome sign for the 35.5 million people planning a holiday road trip.”

All-American road trips remain popular for Independence Day

Nearly 85 percent of travelers (35.5 million) will drive to their holiday destinations, an increase of 0.7 percent. Holiday air travel is expected to increase 1.5 percent to 3.21 million leisure travelers. Travel by other modes of transportation including cruises, trains and buses, will increase 0.5 percent this Independence Day, to 3.2 million.

Lowest Independence Day gas prices in at least five years expected

Despite recent seasonal increases in the price of gas, travelers continue to benefit from substantially lower prices compared to recent years. Most drivers will likely pay the lowest Independence Day gas prices in at least five years. Today’s national average price for a gallon of gasoline is $2.78, 88 cents less than the average price on Independence Day last year. Drivers can use the AAA Mobile app to find the lowest gas prices close to home and along the way to their holiday destinations. Travelers can also plan routes and fun stops for the whole family at AAA.com using AAA’s TripTik Travel Planner; members can save and share customized routes for use on a smartphone, tablet or with the AAA Mobile app.

AAA to rescue travelers stalled by a breakdown

AAA expects to rescue nearly 360,000 motorists at the roadside this Independence Day weekend, with the primary reasons being dead batteries, flat tires and lockouts. AAA recommends motorists inspect their vehicle and check the condition of their battery and tires before heading out on a holiday getaway. Members can download the AAA Mobile app, visit AAA.com or call 1-800-AAA-HELP to request roadside assistance when needed.

Holiday travel expenses on the rise

Travelers will encounter moderately higher lodging rates and airfares this Independence Day.  According to AAA’s Leisure Travel Index, the average nightly stay in a Two Diamond hotel is six percent higher this year at $145, while Three Diamond hotels will cost nine percent more, averaging $195. Average airfares for the top 40 domestic flight routes are six percent higher this Independence Day, climbing to $227.

Download the AAA Mobile app before an Independence Day getaway

Before setting out on an Independence Day getaway, download the free AAA Mobile app for iPhone, iPad and Android. Travelers can use the app to map a route, find current gas prices, access exclusive member discounts, make travel arrangements, request AAA roadside assistance and more. Learn more at AAA.com/mobile.

With the AAA Mobile app, travelers can find more than 58,000 AAA Approved and Diamond Rated hotels and restaurants via TripTik Travel Planner. Every AAA Approved establishment offers the assurance of acceptable cleanliness, comfort and hospitality, and ratings of One to Five Diamonds help travelers find the right match for amenities and services.

AAA’s projections are based on economic forecasting and research by IHS Global Insight. The Colorado-based business information provider teamed with AAA in 2009 to jointly analyze travel trends during major holidays. AAA has been reporting on holiday travel trends for more than two decades. The complete AAA/IHS Global Insight 2015 Independence Day Travel Forecast can be found here.

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. For more information about AAA Travel, visit AAA.com/Travel.

Erin SteppLower Gas Prices Help Fuel 2 Percent Decline From 2014

ORLANDO, Fla. (April 28, 2015) – Due to declines in gas prices and finance charges, the annual cost to own and operate a vehicle has fallen to $8,698, a nearly 2 percent drop from last year, according to AAA’s 2015 Your Driving Costs study.  This research examines the cost of fuel, maintenance, tires, insurance, license and registration fees, taxes, depreciation and finance charges associated with driving a typical sedan 15,000 miles annually. In the United States, a driver can expect to spend 58 cents for each mile driven, nearly $725 per month, to cover the fixed and variable costs associated with owning and operating a car in 2015.

Additional Resources

“Fortunately, reduced gasoline and finance costs more than offset rising costs in other areas,” said John Nielsen, AAA’s Managing Director of Automotive Engineering and Repair.  “As a result, car owners can look forward to saving approximately $178 this year.”

Based on 15,000 miles

Small Sedan

Medium Sedan

Large Sedan

Sedan Average

Minivan

SUV (4WD)

Annual Total Cost

$6,729

$8,716

$10,649

$8,698

$9,372

$10,624

Annual Cost Per Mile

$0.449

$0.581

$0.710

$0.580

$0.625

$0.708

 

Fuel: DOWN 13.77 percent to 11.2 cents per mile/$1,681.50 per year (-$268.50).

Compared to last year’s study, the average cost of regular unleaded fuel fell nearly 13 percent to $2.855 per gallon. This decline, coupled with improvements in vehicle fuel economy, resulted in an average 11.21 cents-per-mile fuel cost.  Due in large part to this decrease, the cost of owning and operating a sport utility vehicle is slightly less than that of a large sedan this year.

Finance Charges: DOWN 21.02 percent to $669 per year (-$178).

With rising car sales and stiff competition among dealers, many manufacturers are offering low finance rates to attract buyers.  In 2015, average vehicle finance rates dropped 21 percent, which equates to approximately $15 per month on a typical five-year loan. However, rates vary widely with borrower credit scores.

Depreciation: UP 4.10 percent to $3,654 per year (+144).

The single largest ownership expense, depreciation, rose for 2015 due to increasing new car sales that are causing an influx of used and off-lease vehicles entering the marketplace. This increased supply has resulted in lower values and selling prices for used vehicles, thus driving up depreciation costs.

Insurance: UP 8.99 percent to $1,115 per year (+$92)

Insurance rates vary widely by driver, driving habits, insurance company and geographical area. AAA’s calculations are based on low-risk drivers with excellent driving records. While premium calculations are confidential, this modest increase of $7.67 per month may be due in part to high-cost modern vehicle features such as infotainment systems, advanced safety features and lightweight materials that can be more expensive to repair and, therefore, insure.

Maintenance: UP .99 percent to 5.11 cents per mile/$766.50 per year (+$7.50)

Annual maintenance, including labor time and repair part costs associated with factory-recommended maintenance, was factored into the 2015 survey along with average costs of an extended warranty.  Maintenance costs varied widely by vehicle type but, on average, were up slightly from 5.06 cents to 5.11 cents per mile. A recent survey of AAA-Approved Auto Repair shops found that the majority of drivers are behind schedule in routine maintenance, including oil changes, tire maintenance and battery inspection/testing.

License/Registration/Taxes: UP 3.74 percent to $665 per year (+$24)

Vehicle prices rose modestly in 2014, contributing to an overall increase in state and local tax costs.  Additionally, some states increased fees related to vehicle purchasing, titling, registration and licensing.

Tires: UP 1.03 percent to .98 cents per mile/$147 per year (+$1.50)

Due to the competitive and dynamic nature of the tire market, tire costs in 2015 remain relatively unchanged, rising by just .01 cents per mile.

In addition to calculating the driving costs for sedans, AAA determined annual costs associated with both minivans and sport utility vehicles. Owners of these vehicles will benefit from annual driving costs nearly four percent lower this year, at $9,372 and $10,624 respectively, due to lower gas prices and finance rates.

“When shopping for a vehicle, smaller isn’t always cheaper,” cautioned Nielsen. “A minivan, for example, can carry up to 7 passengers, yet costs $100 less to own and operate each month compared to a large sedan.”

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 2015 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 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.

Heather HunterNew study conducted by the AAA Automotive Research Center shows electric vehicle driving range can be nearly 60 percent lower in extreme cold and 33 percent lower in extreme heat.

ORLANDO, Fla., (March 20, 2014) – Electric Vehicles (EVs) are energy efficient and environmentally-friendly with the added benefit of reducing fuel costs for motorists. But, just as motorists need to know how far the gas in their tank will take them, EV drivers need to be aware of how far their vehicle can travel on a single charge. According to new AAA research conducted with the AAA Automotive Research Center in Southern California, electric vehicle range can be reduced by an average of 57 percent based on the temperature outside.

Additional Resources

“Electric motors provide smooth operation, strong acceleration, require less maintenance than internal combustion engines, and for many motorists offer a cost effective option,” said John Nielsen, managing director, AAA Automotive Engineering and Repair. “However, EV drivers need to carefully monitor driving range in hot and cold weather.”

To better understand the impact of climate on electric vehicle batteries, AAA conducted a simulation to measure the driving range of three fully-electric vehicles in cold, moderate and hot weather. Temperature made a big difference in driving range for all three EVs.

Vehicles were tested for city driving to mimic stop-and-go traffic, and to better compare with EPA ratings listed on the window sticker. The average EV battery range in AAA’s test was 105 miles at 75°F, but dropped 57 percent to 43 miles when the temperature was held steady at 20°F. Warm temperatures were less stressful on battery range, but still delivered a lower average of 69 miles per full charge at 95°F.

AAA performed testing between December 2013 and January 2014. Each vehicle completed a driving cycle for moderate, hot and cold climates following standard EPA-DOE test procedures. The vehicles were fully charged and then “driven” on a dynamometer in a climate-controlled room until the battery was fully exhausted.

AAA has initiated several projects including mobile recharging units and EV charging stations to support members who drive electric vehicles. EVs provide owners with many benefits, but every motorist needs to be aware of conditions that can impact vehicle driving range. EV drivers need to plan carefully in hot and cold weather. Mapping tools such as the AAA TripTik® Travel Planner pinpoint charging stations to keep motorists on the go.

Additional information regarding AAA’s electric vehicle testing is available on the AAA NewsRoom.

As North America’s largest motoring and leisure travel organization, AAA provides more than 54 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.

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