Analysis: Continued increase in demand will push gas prices higher going forward

Virginia gas prices have risen 8.3 cents per gallon in the past week, averaging $2.62/gallon today, according to GasBuddy’s daily survey of 4,081 stations in Virginia.

Gas prices in Virginia are 30.4 cents per gallon higher than a month ago and stand 38.6 cents per gallon higher than a year ago.

The national average price of gasoline has risen 7.5 cents per gallon in the last week, averaging $2.72/g today. The national average is up 30.3 cents per gallon from a month ago and stands 30.6 cents per gallon higher than a year ago.

Analysis

“Gas prices continued to surge last week following cold weather related shutdowns in Texas, but going forward, the impact from the cold has likely run its course. However, several other factors will rise in their influence on gas prices again, including the fact that gasoline demand continues up steam,” said Patrick De Haan, head of petroleum analysis for GasBuddy.

“According to Pay with GasBuddy data, last week’s total gasoline demand soared to the highest level since the pandemic began as COVD-19 cases continue to drop and and Americans are filling up more. On the supply side, the number of oil rigs active in the U.S. stands nearly 50 percent lower than a year ago, which is a large factor driving prices up. To put it simply, demand is recovering much much faster than oil production levels, which is why oil prices have soared.

“This week, OPEC will be meeting to hopefully increase oil production to temper the rise in prices, but will they increase oil production enough to match the growing appetite of a global economy that’s seen oil demand jump? We’ll have to wait and see.”

Trends

Historical gasoline prices in Virginia and the national average going back ten years:

• March 1, 2020: $2.23/g (U.S. Average: $2.41/g)
• March 1, 2019: $2.22/g (U.S. Average: $2.42/g)
• March 1, 2018: $2.36/g (U.S. Average: $2.54/g)
• March 1, 2017: $2.11/g (U.S. Average: $2.32/g)
• March 1, 2016: $1.57/g (U.S. Average: $1.76/g)
• March 1, 2015: $2.25/g (U.S. Average: $2.42/g)
• March 1, 2014: $3.25/g (U.S. Average: $3.45/g)
• March 1, 2013: $3.67/g (U.S. Average: $3.77/g)
• March 1, 2012: $3.63/g (U.S. Average: $3.74/g)
• March 1, 2011: $3.27/g (U.S. Average: $3.37/g)

Neighboring areas and their current gas prices:

• Roanoke- $2.55/g, up 7.1 cents per gallon from last week’s $2.48/g.
• Richmond- $2.64/g, up 7.8 cents per gallon from last week’s $2.57/g.
• West Virginia- $2.71/g, up 8.2 cents per gallon from last week’s $2.63/g.

GasBuddy data is accessible at FuelInsights.GasBuddy.com.