WASHINGTON, D.C. (December 28, 2020) – Filling up is getting more expensive. On the week, nearly 20 states have gas price averages that increased at least three cents. Upward price movement at the state level has jumped the national gas price average up to $2.25, an average not seen since stay-at-home guidance was issued in mid-March.
The Energy Information Administration (EIA) measures weekly gasoline demand at 8 million b/d, up from the previous week, while gasoline stocks decreased about one million bbl down to 237.7 bbl. Typically, this combination would result in cheaper gas prices, but with crude oil pricing at the highest levels since February, that is not the case.
“December has seen the biggest pump price jump of any month this year, ending with a national average 11 cents higher than it began,” said Jeanette Casselano McGee, AAA spokesperson. “Despite low demand, pump prices are more expensive because crude oil has seen steady gains.”
Motorists can expect gas prices to rise in the coming week, but still be cheaper than the end of 2019.
Today’s national average is three cents more than last week, 13 cents more expensive than last month, but 32 cents cheaper than last year.
- The nation’s top 10 largest weekly increases: Ohio (+15 cents), Michigan (+13 cents), Indiana (+10 cents), Kentucky (+9 cents), Illinois (+8 cents), Tennessee (+6 cents), Wisconsin (+5 cents), Minnesota (+5 cents), Georgia (+4 cents) and North Carolina (+3 cents).
- The nation’s top 10 least expensive markets: Mississippi ($1.91), Texas ($1.93), Louisiana ($1.95), Oklahoma ($1.95), Missouri ($1.97), Arkansas ($1.97), South Carolina ($1.99), Kansas ($2.01), Alabama ($2.01) and Tennessee ($2.03).
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by 11 cents to settle at $48.23. Crude prices increased last due to a weak dollar and rising market optimism that coronavirus vaccines will help crude oil demand recover in 2021. However, as coronavirus infection rates continue to climb and travel restrictions increase this week, crude price gains could be capped.
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.