AAA: Good news, bad news on gas prices

Virginia drivers are finding both good news and bad news at the pump. The good news is that local gas prices continue to drop slightly but the bad news is that many areas are seeing prices between 50 and 60 cents higher than one year ago.

“Drivers may be enjoying a continued drop in gas prices but they shouldn’t get too comfortable with it,” said Tammy Arnette, senior public affairs specialist for AAA Mid-Atlantic. “Motorists can expect to spend an average of $200 more on gas this season, fueled by the price of crude and the high demand for gasoline.”

With strong summer consumer gasoline demand expected in the months ahead, AAA says motorists can expect little relief at the pump with the national gas price average ranging between $2.85 and $3.05 through Labor Day.

Today’s national gas price average is $2.90, which is down two cents in the last week, unchanged in the last month and 60 cents higher than this time last year.

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $65.06 per barrel, down 68 cents from last Friday. A report from the U.S. Energy Information Administration (EIA) released Wednesday showed that domestic crude stockpiles fell by 4.1 million barrels, the biggest one-week drop since late March. Analysts continue to wait on the decision by members of OPEC to ease production cuts. The cartel will meet June 22. As a result of the cut in production, crude has nearly tripled from its 2016 low of $26 a barrel.

Consumers are spending $69 more a month to fill-up compared to last summer. According to AAA, gasoline expenses are accounting, on average, for seven percent of an American’s 2018 annual income, a one and a half percent increase since summer of 2017. According to a AAA survey conducted earlier this year, only one in three (33 percent) respondents said they would change travel plans if gas prices hit $3, while nearly half (47 percent) say $3.50 would be the game changer for their summer plans.

AAA has a variety of resources to help motorists save on fuel

• Fuel Price Finder (www.AAA.com/fuelfinder) locates the lowest fuel price in your area.
• AAA Gas Cost Calculator (gasprices.aaa.com/aaa-gas-cost-calculator/) helps budget travel expenses.
• TripTik Mobile (www.aaa.com/mobile) plots fuel prices along your travel route.
• AAA’s Member Rewards Visa® Credit Card (www.AAA.com/financial/AAAvisa.htm) accumulates double points on fuel purchases.