Following Labor Day weekend and the remnants of Hurricane Ida, the national gas price average has stabilized at $3.18, which is just 3 cents more expensive on the week.
The storm took about 13 percent of U.S. refinery capacity offline and while there are no firm re-start dates, refineries are expected to be back online this month.
Gasoline stock levels are currently at 227.2 million bbl, which is a healthy level. However, stock levels could tighten until refineries resume normal operations. Typically, a constraint on stocks would mean higher gas prices, but with demand expected to decrease going into the fall, price fluctuation should be minimal.
Today’s national average is the same as last month, but 96 cents more than a year ago. Virginia’s average ($2.97) is up two cents from a week ago, down a penny from a month ago, but up 86 cents from this day one year ago.
“Historically, gas demand declines in the fall as schools reopen and summer road trips end, which leads to less expensive gas prices,” said Morgan Dean, AAA spokesperson. “Despite the dip in demand, the national average is expected to remain above $3/gallon especially as crude oil continues to price on the higher end.”
Drivers will welcome the cheaper gas prices following the most expensive summer at the pump in seven years.
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Chris Graham
