Posts Tagged ‘GasBuddy’

JulieHall

Busy year-end holidays will be marked by more travelers than ever on record

ORLANDO, Fla., (December 16, 2014) – AAA projects 98.6 million Americans will journey 50 miles or more from home during the year-end holiday season, an increase of four percent from the 94.8 million people who traveled last year. This upward trend marks the highest forecast growth rate for the year-end holiday season since 2009 and the highest travel volume for the holiday period on record. (AAA data dates back to 2001.) The year-end holiday period is defined as Tuesday, December 23 to Sunday, January 4.

Highlights from 2014/2015 Year-End Holiday Travel Forecast:

  • Holiday travel is expected to total 98.6 million, an increase of four percent from the 94.8 million who traveled last year.
  • Travel volume for the year-end holidays will reach the highest peak recorded by AAA (since 2001).
  • Nearly 91 percent of all travelers (89.5 million) will celebrate the holidays with a road trip, an increase of 4.2 percent from 2013.
  • Air travel is forecast to grow one percent from 2013, with 5.7 million travelers taking to the skies.
  • Low gas prices continue to help boost disposable income this holiday season, with today’s national average price of gas at $2.53 per gallon, 70 cents less than a year ago.

Additional Resources

“’Tis the season for holiday travel, and this year more Americans will join with friends and family to celebrate the holidays and ring in the New Year than ever before,” said Marshall L. Doney, AAA President and Chief Operating Officer. “While the economy continues to improve at an uneven pace, it seems more Americans are looking forward with increasing consumer confidence, rather than looking back at the recession. This is helping to drive expected travel volumes to the highest level we have seen for the year-end holidays.”

“Lower gas prices are filling stockings with a little more cash to spend on travel this year as travelers are expected to pay the lowest prices since 2009,” continued Doney. “Lower prices are increasing disposable income and enabling families to set aside money for travel this year.”

The calendar is having a positive effect on the number of travelers expected this year. This year the holidays land on a Thursday, creating a holiday travel season that is one day longer than last year’s and the longest since 2008, offering travelers more options for departures and return trips. This flexibility makes it possible for more people to fit holiday travel into their schedules.

With more than 90 percent of holiday travelers driving to their destinations, AAA urges everyone on the road to be extra diligent about the dangers of impaired driving. According to the latest data from the AAA Foundation for Traffic Safety’s annual Traffic Safety Culture Index, one in eight of all licensed drivers who drink at least occasionally reported having driven when they thought their alcohol level might have been close to, or possibly over, the legal limit in the past year.

The survey also reveals 91 percent of drivers consider impaired driving to be unacceptable, with 42 percent reporting that drunk drivers are a bigger problem today versus three years ago.  “Despite the ubiquitous warnings about drinking and driving, especially during the holiday season, an average of one alcohol-impaired driving death occurs every 45 minutes,” said Doney.

AAA works year-round to educate motorists about driving practices that will help keep them safe and reduce traffic-related crashes and injuries.  PreventDUI.AAA.com is an online resource offering impaired driving facts, transportation alternatives and expert advice.

Impact of gasoline prices on travel plans

Today’s national average price of gasoline is at the lowest level in five years and 70 cents lower than last year, a welcome gift for holiday travelers. Gas prices have fallen for 82 days in a row, helping to increase Americans’ disposable income 3.5 percent from year-ago levels, which has had a positive effect on travel.

Hotel, car rental rates rise modestly

According to AAA’s Leisure Travel Index, hotel rates for AAA Three Diamond lodgings are expected to increase four percent from one year ago with travelers spending an average of $143 per night compared to $138 last year. The average hotel rate for AAA Two Diamond hotels has risen five percent with an average cost of $108 per night. Daily car rental rates will average $66, four percent higher than last year.

Airfares fall seven percent this year, driven by low-cost carriers

Average discounted round-trip airfares across 40 top domestic routes are expected to fall seven percent this year, to $186. This is influenced by the availability of discounted rates from low-cost carriers in several top markets. AAA encourages travelers to consider the full cost of a ticket when purchasing air travel, as many airlines charge ancillary fees for checked bags, meals, priority boarding and seat assignments.

AAA expects to rescue 1.1 million motorists this holiday season

Between December 23 and January 4, AAA expects to come to the rescue of more than 1.1 million motorists with the primary reasons for breakdowns being dead batteries, flat tires and lockouts. AAA recommends motorists check battery and tire condition and prepare vehicles for winter driving before heading out on a holiday getaway. Car care tips and information are available at AAA.com.

AAA offers travel planning resources

AAA’s digital tools for travel planning on the go include the free AAA Mobile app for iPhone, iPad and Android. Travelers can use the app to map a route, find current gas prices and discounts, book a hotel and access AAA roadside assistance. Travelers can learn more at AAA.com/mobile.

On AAA.com, travelers can find more than 58,000 AAA Approved and Diamond Rated hotels and restaurants using the TripTik Travel Planner or the searchable Travel Guides at AAA.com/Travel. 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 collection of downloadable eTourBook guides for tablets and smartphones is available free to members at AAA.com/ebooks. Choose from 101 top North American destinations including city titles, like the award-winning Las Vegas, and regions like Wine Country and national parks.

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 the major holidays. AAA has been reporting on holiday travel trends for more than two decades. The complete AAA/IHS Global Insight 2014 Year-End Travel Forecast can be found here.

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

 

Pump Prices Likely Below $2.50 by Christmas

December 15th, 2014 by admin

Michael Green Contact Tile(WASHINGTON, December 15, 2014) Holiday cheer has come early for the motoring public, with the average for retail gasoline at its lowest level in more than five years. Today’s national average price for regular unleaded gasoline is $2.55 per gallon. The average price at the pump is more than a dime (-12 cents) less than one week ago and more than a quarter (-36 cents) less than a month ago. The national average is down 69 cents from this same date last year and has now dropped on 81 consecutive days for a total of 80 cents during this stretch. Motorists are paying $1.15 less than the peak 2014 price, which was $3.70 on April 8. AAA estimates drivers are saving more than $400 million dollars each day compared to the high prices paid earlier this year.

 Avg-Gas-Prices-2011-2014

The average price at the pump has fallen nearly 25 percent since the start of the year, and if the global price of crude continues to register new multiyear lows, these lower prices are likely to persist. Barring any unexpected spikes in global prices, or declines in domestic production, the price at the pump should remain relatively low approaching the New Year and into 2015.

Every state in the continental United States is posting an average price below the $3.00 per gallon benchmark. Hawaii ($3.70) and Alaska ($3.39), as is often the case, are the nation’s most expensive markets for retail gasoline and of the lower 48 states drivers in the northeast are paying the most per gallon:  New York ($2.98), Connecticut ($2.90) and Washington, D.C. ($2.90). The nation’s least expensive markets are the Midwestern states of Missouri ($2.25) and Oklahoma ($2.29), closely followed by the Gulf Coast states of Texas ($2.33) and Mississippi ($2.33).

 10-least-Expensive-Avg-Gas-Prices-12-15-14

The impact of falling global oil prices for consumers is abundantly clear in the retail gasoline market with prices lower nationwide on the week, month and year. The price at the pump is down by a nickel or more week-over-week in every state and Washington, D.C. Forty-one states are registering savings of a dime or more, and the most dramatic savings are in Idaho (-22 cents), Michigan (-20 cents), Ohio (-19 cents) and Indiana (-19 cents). Drivers in Michigan (-56 cents), Idaho (-54 cents) Indiana (-51 cents) and South Dakota (-50 cents) are saving the most on a month-over-month basis. The price in every state has dropped by twenty cents or more during this span.

Yearly comparisons continue to reflect even more extreme discounts at the pump, largely due to the price of crude setting new multi-year lows.  With the exception of Hawaii (-22 cents) and Alaska (-29 cents), the price at the pump is down in every state and Washington, D.C. by more than 35 cents versus this same date last year. Forty-two states are posting a discount of 50 cents or more per gallon year-over-year and drivers in 20 states are saving 70 cents or more. The largest savings are in Florida (-80 cents), Maine (-79 cents) and Kentucky (-79 cents).

 Top10-Weekly-Savings-12-15-14

Concerns of sluggish global oil demand combined with abundant supply continue to leave global oil markets searching for a bottom. Just two months ago market watchers were divided on the likelihood that the prices of West Texas Intermediate (WTI) would fall below $80 per barrel. Last week, for the first time since 2009, the price of WTI dropped below $60. WTI is now approximately 40 percent cheaper than the start of the year and nearly 50 percent below the high in June ($107.26). The Organization of Petroleum Exporting Countries (OPEC) continues to maintain production levels, and the cartel’s three biggest members are reportedly ramping up exports to Asia in an effort to sustain market share in that region. Reductions in global oil prices have ultimately meant a welcome savings at the pump for motorists; however sustained low prices could impact U.S. production, which is more expensive than its global counterparts. Market watchers are also beginning to consider the potential for geopolitical instability in countries that are heavily dependent on oil exports to balance their budgets, including Venezuela and Nigeria. WTI was down $2.14 to settle at $57.81 per barrel on Friday at the close of formal trading on the NYMEX.

Michael Green(WASHINGTON, July 7, 2014) The national average price of gas has fallen for ten straight days, but remains the highest price for this calendar date since 2008.  Yesterday, for the first time since June 11, the national average price for regular unleaded gasoline reflected a month-over-month discount.  Today’s average is $3.65 per gallon. This price is two cents less than one week ago and fractions of a penny less than one month ago, but it remains 18 cents more than this date in 2013.

National Average Gas Price Comparison 2011-2014 July 7 2014

With Independence Day in the books, this year’s holiday registered the highest price since 2008 at $3.66.  This surpassed the price per gallon for the holiday from each of the previous five years: 2013 ($3.48); 2012 ($3.34); 2011 ($3.57); 2010 ($2.74); and 2009 ($2.62), but was still well below the all-time-high for the date of $4.10 in 2008.

The pump price in four states continues register above $4.00 per gallon: Hawaii ($4.33), Alaska ($4.22), California ($4.14) and Washington State ($4.01). While prices in all but three states (Idaho, Wyoming and Utah) are higher than the same date last year, prices in 38 states have dropped over the past week, led by a handful of Midwestern states: Michigan (-10 cents), Ohio (-7 cents), Missouri (-6 cents), Kentucky (-6 cents), Illinois   (-5 cents) and Minnesota (-4 cents).  Prices over the past two weeks have been more evenly split.  Prices in 23 states and Washington, DC have increased – led by Alaska (+7 cents), Utah (+6 cents) and Idaho (+5 cents) – while prices in 27 states have fallen – led by Ohio (-17 cents), Indiana (-12 cents) and Illinois (-12 cents). With high wholesale gasoline prices beginning to subside in many parts of the country, AAA expects pump prices for many US motorists to continue to tick lower over the coming week.

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Violence in Iraq continues to impact global oil prices, but as production in the south of the country remains unaffected, the fear of a disruption to supply has abated. Market watchers are keeping a close eye on the situation, but the risk premium that had pushed oil prices to 2014 highs has subsided in recent trading sessions. These elevated oil prices have meant stubbornly high pump prices for motorists, but as oil prices have eased retail gas prices have finally started to follow suit.

At the close of formal trading on the NYMEX, West Texas Intermediate (WTI) crude oil settled 53 cents lower at $103.53.

Michael Green

 

 

 

 

 

AAA Monthly Gas Price Report
(WASHINGTON, June 30, 2014)

Drivers Stuck Paying Highest Gas Prices in Six Years for Independence Day

  • U.S. drivers will pay the most expensive Independence Day gas prices since 2008, primarily because Iraqi violence has increased global petroleum costs. AAA predicts that 34.8 million Americans will travel 50 miles or more by car during the holiday weekend despite high gas prices.
  • “Most drivers are paying about 15-20 cents more per gallon than expected heading into the busy Independence Day weekend due to market fear about Iraq,” said Avery Ash, AAA spokesman. “It is frustrating that events overseas will make it more expensive to celebrate Fourth of July here at home.”
  • With Independence Day only a few days away, today’s national average price of gas is $3.68 per gallon. This average is considerably more expensive than recent years for the holiday. The national average on July 4 in previous years was: $3.48 (2013); $3.34 (2012); $3.57 (2011); $2.74 (2010); $2.62 (2009); and $4.10 (2008).
  • AAA does not believe that high gas prices will have a significant impact on the number of people traveling, but it could result in some consumers cutting back on dining, shopping or other trip activities. AAA’s full Independence Day forecast can be found here.
  • The monthly average price of gas in June was $3.67 per gallon, which was the most expensive for June since 2011, and it was the highest average for any month since March 2013. Last year gas prices averaged $3.60 per gallon in June.
  • Gas prices often decline in June as refineries complete maintenance and increase gasoline production in anticipation of the summer driving season. During the previous three years, the national average price of gas declined in June by an average of 21 cents per gallon. A month ago, AAA predicted the national average could decline 10-15 cents per gallon in June, but this did not happen due to the unexpected events in Iraq.
  • On June 10, insurgents known as the Islamic State of Iraq and the Levant (ISIL), captured Mosul, which is Iraq’s second largest city. Following this attack, there were concerns in the market that the rebels would take Baghdad or disrupt the southern oil producing regions of the country. These concerns helped drive up global oil prices, which made it more expensive to produce gasoline. Iraq is the second largest oil producer in OPEC, and any decline in exports could impact global oil supplies.

Gas Prices to Remain Expensive During Summer Driving Season

  • Gas prices this July likely will remain expensive due to high crude oil costs and rising summertime demand. AAA expects the national average price of gas in July will range from $3.60-$3.70 per gallon, though prices could climb higher if there are new developments in Iraq or a major hurricane. Last year gas prices averaged $3.58 per gallon nationally in July.
  • “It is shaping up to be a hot and expensive summer for gas prices, and we have not even hit the busiest time of the year yet,” continued Ash. “It is clear that most drivers will pay high prices as they fill up for their summer road trips.”
  • AAA expects the national average price of gas likely will remain relatively flat in the near future and could even decline a few cents as the situation stabilizes in Iraq. Price increases from recent ISIL attacks in Iraq already are reflected in current prices, and it would take major new developments, such as ISIL moving into southern oil producing regions, for prices to rise significantly higher in the days ahead.
  • Gas prices have increased by an average of 16 cents per gallon in July during the previous three years as strong summer demand pushed up prices. July is typically the second busiest month of the year on the roads behind August. Last year Americans drove a total of 263.2 billion miles in July.
  • From Memorial Day through Labor Day in 2013, gas prices nationally averaged $3.58 per gallon. The most expensive summer driving period was in 2008 when prices averaged $3.95 per gallon. Gas prices have averaged $3.67 per gallon so far this summer.

National Average Price of Gas Has Remained Flat This Week

  • Today’s national average price of gas is $3.68 per gallon, which is the same as a week ago. Gas prices nationally have stopped increasing and have remained relatively flat in recent days as the situation stabilizes in Iraq. The conflict in Iraq is unlikely to send gas prices significantly higher unless there are major developments in Baghdad or in the southern oil producing regions.
  • The five states with the highest average prices today include: Hawaii ($4.34), Alaska ($4.22), California ($4.13), Washington ($4.00) and Oregon ($3.98). The five states with the lowest average prices include: South Carolina ($3.39), Alabama ($3.42), Mississippi ($3.45), Tennessee ($3.46) and Arkansas ($3.48).
  • Despite high gas prices in most parts of the country, drivers in four states are paying less than a year ago. These four states include Utah (-8 cents), Idaho (-6 cents), Montana (-1 cent) and Colorado (-0.1 cents). The states with the largest price increases compared to a year ago include Michigan (42 cents), Kentucky (37 cents) and Ohio (32 cents).
  • The most expensive metro area in the continental United States is San Luis Obispo-Atascadero-Paso Robles, Calif. at $4.24 per gallon. The least expensive metro area in the United States is Greenville-Spartanburg-Anderson, S.C. at $3.33 per gallon.

Michael Green( WASHINGTON, June 30, 2014) The national average price of gas has stopped increasing as we approach the Independence Day holiday, though prices remains at a six-year high for this time of year. Today’s national average for regular unleaded gasoline is $3.68 per gallon. The price has remained relatively stable over the past seven days, and the current price is just a penny more than one month ago.

Consumers have seen little fluctuation in the national average for the month of June; however the current price at the pump is 19 cents more than at this time last year ($3.49). In comparison to previous Independence Day holidays, motorists will face prices that are the highest since 2008, with today’s average ($3.68) surpassing the holiday’s price per gallon from: 2013 ($3.48); 2012 ($3.34); 2011 ($3.57); 2010 ($2.74); and 2009 ($2.62).

The situation in Iraq continues to put pressure on global oil prices, as markets weigh the potential for supply disruptions from OPEC’s second largest producer. These elevated oil prices have ultimately meant stubbornly high retail gasoline prices for motorists.

Avg Gas Prices 2011-2014

This past Friday (June 27), the price at the pump reached the $4.00 mark in the state of Washington ($4.00 today) for the first time since 2013 (May 24). The Evergreen State joins Hawaii ($4.34), Alaska ($4.21) and California ($4.13) with prices at or above $4.00 per gallon. Prices have remained relatively stable (+/- 2 cents) over the last week in 43 states and Washington, D.C.,  and consumers in just four states have seen prices either rise or fall more than a nickel over this same period: Alaska (+7 cents), Illinois (- 6 cents), Ohio (-10 cents) and Indiana (-11 cents). Prices over the last 30 days have been more universally volatile with consumers in 31 states and Washington, D.C. posting averages that have moved either up or down over a nickel, led by Alaska (+21 cents), Ohio (-23 cents) and Indiana (-25 cents).

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Regardless of geographic location, motorists in nearly every state are paying more at the pump than one year ago. Motorists in 40 states and Washington, D.C., are experiencing a bit of sticker shock, with prices up a dime or more compared to this time last year. This largest increases are in Michigan (+42 cents), Kentucky (+37 cents) and Ohio (+30 cents). However, four states are outside of this trend and have posted year-over-year declines: Colorado (-0.1 cent), Montana (-1 cent), Idaho (-6 cents) and Utah (-8 cents).

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Energy market analysts continue to monitor the situation in Iraq and the movements of the group ISIL (Islamic State of Iraq and the Levant).  After capturing Mosul, Iraq’s second largest city, it was rumored that ISIL would enter Baghdad or the country’s southern oil producing. These concerns caused global prices to rise, but, many analysts now see this action as unlikely in the near term barring a major offensive move by ISIL.

The conversation regarding domestic production was revived this week when two Texas energy companies received permission to export ultra-light oil to foreign buyers. The decision relates to a decades long ban on crude exports, enacted in response to the 1973 OPEC oil embargo and the historic gasoline shortages of the 1970s.  The move falls short of relaxing the ban on oil exports, which oil producers have called for, and will remain a topic of discussion in the coming months.

At the close of formal trading on the NYMEX, West Texas Intermediate (WTI) crude oil settled 37 cents lower at $105.37.

Average Gas Prices Approach 2014 High

June 23rd, 2014 by admin

Michael Green( June 23, 2014) As we approach the end of the first full month of the 2014 summer driving season, the national price for regular unleaded gasoline is $3.68 per gallon, which is the highest price for early summer in six years. The average price at the pump has increased for 12 consecutive days for a total of four cents per gallon, narrowing the gap between the current retail price and the 2014 peak of $3.70 per gallon reached on April 28. Today’s average is two cents more than one week ago, three cents more than one month ago, and motorists are paying 11 cents more per gallon than a year ago.

Violence keyed by the militant group known as ISIS (the Islamic State in Iraq and the Levant) has continued to expand toward southern Iraq, where the majority of the country’s oil production is located. These concerns have helped to increase global oil prices, which makes it more expensive to produce gasoline. AAA had previously predicted that the national average price of gas would fall 10-15 cents per gallon in June, but that now appears unlikely due to higher oil costs. This means that even though the national average has only increased a few cents per gallon since the Iraq violence intensified, drivers are likely to pay substantially higher gas prices than they would have otherwise.

National Averages

For more than a month, drivers in three states have paid more than $4.00 dollars per gallon at the pump: Hawaii (currently $4.34), California (currently $4.15) and Alaska (currently $4.10).  Prices in 43 states and the District of Columbia have increased during the previous week and prices in 18 states are up by a nickel or more. Motorists in only five states have seen pump prices fall by a penny or more: Indiana (-14 cents), Ohio (-13 cents), Michigan (-10 cents), Illinois (-4 cents) and Kentucky (-3 cents).

Top ten expensive

In 41 states and Washington, D.C., drivers are paying more at the pump in comparison to this date last year, and 33 states and Washington, D.C. are paying a dime or more per gallon. Of the eight states with lower prices at the pump, only the drivers in North Dakota (-13 cents) and Utah (-12 cents) are experiencing savings in the double-digits.

top ten yearly increases

After a run-up to a new nine-month high to end last week, and with no major market-moving news over the weekend, crude oil prices moved slightly lower today. At the close of formal trading on the NYMEX, West Texas Intermediate (WTI) crude oil settled 66 cents lower at $106.17.

Michael Green(WASHINGTON, June 16, 2014) The national average price for regular unleaded gasoline is $3.66 per gallon.  Today’s average is fractions of a penny more than a week ago, a little over a cent more than a month ago, and a nickel per gallon more than the same date last year.  After falling for nine straight days, the national average has increased for five consecutive days for a total of about two cents per gallon as violence in Iraq has intensified.

AAA has predicted that drivers will pay relatively high prices this summer, ranging from $3.55 – $3.70 cent per gallon, however this range may be higher if unrest in Iraq escalates or disrupts oil production in the region. Given the increase in crude oil prices to nearly a nine-month high, retail gas prices are likely to rise to or near the current 2014 high ($3.70 on April 28) in the coming days.

Gas prices often decline in June with the national average falling the previous three years at an average of about 20 cents per gallon. The recent turmoil in Iraq is likely to prevent that trend from repeating this year. A year ago the national average was turning lower as domestic production and distribution issues eased, although market watchers were keeping a close eye on geopolitical tensions in Syria. While Syria is not a major oil producing nation, there was concern that fighting might spread to other countries in the region, which kept some upward pressure on crude oil prices.

Avg-Gas-Prices-2011-20142

Drivers in Hawaii ($4.35), California ($4.09) and Alaska ($4.06) continue to pay more than $4 per gallon for regular unleaded gasoline, a trend that has lasted for 23 days. Prices have remained relatively stable (+/- 2 cents) in 34 states and the District of Columbia over the past week, however consumers in five states have seen prices climb a nickel or more: Montana and Ohio (+6 cents) and Illinois, Arkansas, and Missouri (+5 cents).

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The overall picture for the states is reflecting a bit of regional variation, especially when looking at the month-over-month and year-over-year averages. The biggest fluctuations in price are evident when comparing year-over-year averages, where prices in 29 states and the District of Columbia have swung by 10 cents or more. The biggest price drops have been in the Midcontinent and Mountain States: North Dakota (-26 cents), Colorado (-22 cents) South Dakota (-19 cents) and Utah (-18 cents).  The biggest price increase is Pennsylvania (+23 cents).

The month-over-month picture reflects a similar picture of price volatility. Consumers in Michigan (+20 cents), Illinois (+16 cents), Montana (+14 cents) and Wisconsin (+14 cents) are paying the largest premiums per gallon.  Meanwhile, drivers in parts of the South have watched pump prices fall: Alabama (-11 cents), Georgia (-8 cents), South Carolina (-7 cents) and Florida (-7 cents).

Largest-Yearly-Fluctations-6-16

Much of the attention of global market watchers has shifted from Ukraine and Russia, to widespread violence in Iraq.  According to the EIA, Iraq has the fifth largest proven oil reserve in the world and is the second largest producer of crude oil in the Organization of the Petroleum Exporting Countries. Markets will continue to monitor the conflict closely due to the potential for violence to spread to neighboring oil producing nations, and the overarching regional foreign policy implications associated with an Iraqi civil war.

After a run-up late last week, and with no major market-moving news over the weekend, crude oil prices were relatively steady today. At the close of formal trading on the NYMEX, West Texas Intermediate (WTI) crude oil settled at $106.90, just a penny shy of Friday’s settlement, which was the highest since September 18.

Michael Green(WASHINGTON, June 9, 2014) A day before the 50th anniversary of the modern self-serve fueling station, the national average price for regular unleaded gasoline is $3.65 per gallon.  Today’s average is two cents less than a week ago and fractions of a penny less than a month ago. This time last year consumers were paying two cents less at the pump ($3.63), and the national average was beginning to trend downward toward the summer low of $3.47 (July 7, 2013).

For the past three years, the national average has steadily declined to start the summer driving season. Although early data for summer 2014 is moving in this direction, it is too soon to say to what extent this pattern will persist for a fourth year.

Avg-Gas-Prices-2011-20141

For the past 16 days consumers in Hawaii, California and Alaska have all paid an average pump price of more than $4 per gallon – Hawaii is the only state within 25 cents of the state’s record price per gallon ($4.61 on April 11, 2012). The price at the pump in 35 states has remained relatively stable (+/- 2 cents) over the past seven days, and only two states are posting fluctuations of more than a nickel, both to the downside: Kentucky (-6 cents), and Ohio (-12 cents).

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Consumers in 29 states and the District of Columbia are paying  a bit less at the pump  than a month ago, with the largest occurring savings in  Alabama (-11 cents), Florida (-10 cents) and Georgia (-10 cents). For this same period, three states – Michigan (+22 cents), Indiana (+15 cents) and Wisconsin (+11 cents) – are posting double-digit increases. Motorists in 31 states are paying a year-over-year premium, and of this total more than half are paying an additional 10 cents or more per gallon, led by Pennsylvania (+25 cents), Nevada (+22 cents), South Carolina (+20 cents).


On the other side of the year-over-year spectrum, the price per gallon has dropped by a dime or more in 17 states. This time last year, the Great Lake States (Ohio, Wisconsin, Michigan, Illinois, and Indiana) were experiencing near record high prices due to supply and transportation challenges caused by unscheduled maintenance at local refineries.  As a result, the largest year-over-year savings at the pump are posted by Midcontinent states, with drivers in North Dakota leading the way at 35 cents per gallon less than this date last year.

Market watchers continue to monitor the ongoing unrest in Libya and Ukraine, and its impact on global crude prices. Additionally, Organization of the Petroleum Exporting Countries (OPEC) has a meeting scheduled for this week and the proceedings will be closely monitored to see if there are any indications that production levels will be adjusted in the near future.

At the close of formal trading on the NYMEX, West Texas Intermediate (WTI) crude oil settled $1.75 higher at $104.41 per barrel, which is the highest settlement since March 3.

Michael Green Contact Tile(WASHINGTON, June 2, 2014) One week into the summer driving season, the national average price for regular unleaded gasoline is $3.67 per gallon. This is one cent less than last month but it is a penny more than last week and a nickel more than on the same date last year.

Entering the summer months, AAA expects that drivers will experience little relief at the pump and prices are likely to remain near a range of $3.55-$3.70 per gallon, which is similar to last summer’s range of $3.47-$3.67. Continuing geopolitical concerns, major refinery disruptions or a severe hurricane season (June 1- November 30) could send the national average higher than anticipated, while the absence of such catalysts could allow prices to fall below this range.

Avg-Gas-Prices-2011-2014

After 11 straight weeks, New York and the District of Columbia have fallen out of the top ten most expensive markets, and for the ninth consecutive day consumers in Hawaii, California and Alaska are all paying more than $4 per gallon at the pump.

Although the price at the pump in the majority of states (38) and the District of Columbia has remained relatively stable (+/- 2 cents) over the past seven days, consumers in Ohio (+10 cents), Indiana (+8 cents) and Michigan (+8 cents) are experiencing a bit of sticker-shock at the pump due to week-over-week price increases that are the highest in the nation.  Over the last several years Midwestern gas prices have regularly been the most volatile in the country as refinery issues, supply bottlenecks and logistical issues have caused sometimes dramatic fluctuations.

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In comparison to this same date last year, drivers in 22 states and the District of Columbia are paying premiums at the pump in the double-digits, led by: Pennsylvania (+26 cents), South Carolina (+23 cents) and Kentucky (+23). Conversely, consumers seven states are paying at least a quarter less per gallon: North Dakota (- 44 cents), Iowa (-36 cents), Minnesota (-36), Colorado (-32 cents), South Dakota (-32 cents), Nebraska (-28 cents) and Kansas (-26 cents).

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The situation in Russia and Ukraine remains unresolved, and pro-Russian separatists continue to clash with Ukrainian military forces throughout the region. However analysts still report that the likelihood of a disruption in supply remains low, which was supported by today’s announcement that Russia plans to delay the introduction of a prepayment system for natural gas supplies to Ukraine. At the close of formal trading on the NYMEX, West Texas Intermediate (WTI) crude oil settled 24 cents lower at $102.47 per barrel. This marks the WTI’s 15th consecutive settlement above the $100 per barrel threshold.

Michael Green Contact Tile

 

 

 

 

 

(Washington, June 2, 2014)

Gas Prices Expected to Remain High for Summer Driving Season

  • AAA expects gas prices to remain relatively high during the summer driving season as millions of Americans take long road trips to destinations nationwide. AAA predicts the national average price of gas this summer likely will vary from $3.55-$3.70 per gallon. Major refinery disruptions, geopolitical concerns or a damaging hurricane season could send prices higher than forecast.
  • “While it is impossible to predict the exact price of gasoline, we can guarantee that millions of Americans will pay high prices as they hit the roads this summer,” said Avery Ash, AAA spokesman. “Expect a feeling of déjà vu with gasoline costing about the same as last summer.”
  • Gas prices have declined during the previous three years in June for an average of 21 cents per gallon. It is possible that many drivers could see prices fall about 10 cents per gallon this month if refinery production increases as anticipated. Gas prices averaged $3.60 in June 2013, $3.50 in June 2012 and $3.68 in June 2011.
  • Gas prices often tick higher from Independence Day through August during the height of the summer driving season as refineries work to keep pace with high demand. In addition, the threat of potential hurricanes and disruption along the U.S. Gulf Coast can result in higher prices, although the National Oceanic and Atmospheric Administration is predicting a less active than usual storm period in 2014.
  • Average national gas prices in the summer of 2013 reached a low of $3.47 on July 6 and a high of $3.67 on July 22. Gas prices nationally averaged $3.58 per gallon from Memorial Day through Labor Day in 2013. The most expensive summer driving period was in 2008 when prices averaged $3.95 per gallon.
  • Peak gasoline demand generally occurs during the summer, and AAA expects this trend to remain true this year. In 2013, average gasoline consumption from June-August was about five percent higher than during other months of the year. Americans drove an estimated 788 billion miles during this period last year, according to the Federal Highway Administration.

Gas Prices Nationally Averaged $3.66 per Gallon in May

  • The national average price of gas was $3.66 per gallon in May, which was about two cents higher than April and about seven cents higher than May 2013. National gasoline consumption in May was the highest since 2011 for the month, according to the Energy Information Administration.
  • “After such a long, brutal winter, it seems that many drivers took advantage of the great weather in May,” continued Ash. “Significantly stronger than expected gasoline demand has kept prices high heading into the summer driving season.”
  • Gas prices remained relatively steady throughout the month with the national average declining about two cents per gallon from the beginning to the end of May. High demand kept prices from falling farther despite increased gasoline production.
  • The national average reached a high of $3.70 per gallon on April 28, which could be the peak for the year. Gas prices often peak in the spring as refineries conduct maintenance and produce less gasoline. Many refineries have completed seasonal maintenance, which has allowed gasoline production to increase in advance of the busy summer driving season. Nevertheless, national gasoline supplies remain tight due to higher than anticipated demand in May.
  • Gas prices averaged $3.59 per gallon in May 2013, $3.72 per gallon in May 2012 and $3.91 per gallon in May 2011.

Gas Prices Slightly Higher than a Year Ago in Majority of States

  • Today’s national average is $3.65 per gallon, which is about five cents higher than a year ago. Drivers in 29 states are paying an average that is higher than last year with the most expensive differences including: Pennsylvania (+26 cents), South Carolina (+23 cents) and Kentucky (+23 cents). The states experiencing the largest declines from a year ago include: North Dakota (-44 cents), Iowa (-36 cents) and Minnesota (-36 cents).
  • State average gas prices vary by nearly a dollar across the country. Seven percent of U.S. stations are selling gas for more than $4.00 per gallon today, while one-third of U.S. stations are selling gas for less than $3.50 per gallon. The five states with the highest average prices today include: Hawaii ($4.36), California ($4.13), Alaska ($4.01), Ohio ($3.92) and Connecticut ($3.92). The five states with the lowest average prices include: Arkansas ($3.40), Mississippi ($3.40), Louisiana ($3.41), Tennessee ($3.43) and Montana ($3.44).
  • Drivers in 34 states are paying cheaper prices than a month ago, and consumers in many parts of the Great Lakes region are paying about the highest prices of the year due to tight supplies and high demand. The states paying the most compared to a month ago include: Ohio (+25 cents), Indiana (+21 cents) and Michigan (+20 cents). The states with the largest price declines during the previous month include: California (-13 cents), Florida (-12 cents) and Alabama (-12 cents).

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. For more information, contact Michael Green at 202-942-2082, mgreen@national.aaa.com.

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