AAA: Gas prices retreat after recent uptick

During the month of November, the national gas price average fell to $3.18 per gallon on Nov. 12, which was the lowest average since Feb. 22, 2011, before climbing as much as 10 cents to reach $3.27 per gallon on Dec. 2.

“November was a frustrating month for many drivers as hopes for $3 per gallon gasoline slipped away due to unexpected refinery problems and tightening supplies,” said Martha M. Meade, Manager of Public and Government Affairs for AAA Mid-Atlantic.

“Despite the recent uptick, gas prices fortunately remain noticeably less expensive than in recent years.  AAA expects prices will reverse recent trends as supplies build and drop another 10-15 cents per gallon by the end of the year,” Meade said.

This streak of rising prices comes on the heels of a stretch where the national average ticked lower on 65 of 72 days from Sept. 1 until Nov. 12 and fell 41 cents during that span.  This week the national gas price average dropped to $3.26 cents per gallon Friday, which is two cents less expensive than one week ago, three cents more expensive than one month ago and 12 cents cheaper than the same date last year.

The recent increase in retail prices has been fueled primarily by increases in Southeastern and Mid-Atlantic states due to planned and unplanned maintenance at a number of Gulf Coast refineries, which resulted in a ripple effect across the eastern half of the country, and seasonally stronger demand for gasoline.

Crude oil prices continued an uptick this week, reaching a five-week high Thursday ($97.38) and just shy of the $98 per barrel mark.  The commodity has been supported by a drop in U.S. crude stockpiles after a 10-week increase.  Gains have been curbed by speculation that positive U.S. economic data could prompt the U.S. Federal Reserve to halt its stimulus bond-buying program, which could reduce support for riskier assets such as oil and other commodities.  Crude prices were also supported by news that TransCanada expects service on the southern leg of Keystone XL pipeline to begin in early January.  Crude oil settled at $97.65 Friday, up five percent on the week.

 

Current Price Averages

Regular Unleaded Gasoline (*indicates record high)