The national average for a gallon of gas rose less than three cents over the past week to reach $4.62, but this respite could be brief, according to AAA.
Crude oil has moved above $115 a barrel due to fears of further global supply constraints caused by a European Union ban on Russian oil exports. And domestic gas demand may again start to climb as drivers fuel up for the three-month-long summer travel season, which began this Memorial Day weekend.
Virginia’s average ($4.46) is the same as a week ago, up 44 cents from a month ago and $1.53 more expensive than this day a year ago.
“So far, the pent-up urge to travel caused by the pandemic outweighs high pump prices for many consumers,” said Morgan Dean, AAA Mid-Atlantic spokesperson. “But 67 percent of drivers recently surveyed told us they would change their driving habits if gas hit $4.50 a gallon. That number rises to 75 percent at $5 a gallon. If pump prices keep rising, will people alter their summer travel plans? That remains to be seen.”
According to Energy Information Administration data, total domestic gasoline stocks decreased by 500,000 bbl to 219.7 million bbl last week. Gasoline demand also dipped from 9 million b/d to 8.8 million b/d, approximately 700,000 b/d lower than a year ago.
The softening of gas demand helped minimize price increases ahead of Memorial Day. However, gas demand may spike this week after drivers took to the roads for the holiday. But pump price increases could be limited if demand slows again following the holiday weekend.
Today’s national average for a gallon of gas is $4.62, which is 45 cents more than a month ago, and $1.58 more than a year ago. Virginia’s average ($4.46) is the same as a week ago, up 44 cents from a month ago and $1.53 more expensive than this day a year ago. Today’s state average is tied with the all-time record high average Virginia set on 5/22/22.
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