Economic recovery pushing gas prices up

Increased demand as the economy begins its recovery from the COVID-19 shutdown is pushing gas prices higher.

Virginia gas prices have risen 2.5 cents per gallon in the past week, averaging $1.83/gallon today, according to GasBuddy’s daily survey of 4,081 stations.

Gas prices in Virginia are 14.8 cents per gallon higher than a month ago and stand 68.2 cents per gallon lower than a year ago.

The national average price of gasoline has risen 4.3 cents per gallon in the last week, averaging $2.02/g today. The national average is up 19.8 cents per gallon from a month ago and stands 72.5 cents per gallon lower than a year ago.

GasBuddy data is accessible at FuelInsights.GasBuddy.com.

“It’s no surprise that gasoline prices have increased for the sixth straight week as gasoline demand has hit its highest level since early March as Americans are returning to the roads,” said Patrick De Haan, head of petroleum analysis for GasBuddy. “With OPEC extending its large oil production cuts until at least July, oil prices continue to rally. In Sunday evening trade, a barrel of WTI crude oil briefly touched $40 per barrel, the highest level in months thanks to rebounding demand for oil and gasoline as well as the previous production cuts. While I don’t see oil’s strength holding too long given that oil demand remains 20-25% below a year ago, I believe the anxiety pushing oil prices up is coming from the fact that the economy may be recovering quicker than most anticipated. For now, motorists will likely continue to see gas prices rising for the weeks ahead.”

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

• June 8, 2019: $2.51/g (U.S. Average: $2.75/g)
• June 8, 2018: $2.71/g (U.S. Average: $2.93/g)
• June 8, 2017: $2.14/g (U.S. Average: $2.35/g)
• June 8, 2016: $2.20/g (U.S. Average: $2.36/g)
• June 8, 2015: $2.53/g (U.S. Average: $2.75/g)
• June 8, 2014: $3.45/g (U.S. Average: $3.66/g)
• June 8, 2013: $3.36/g (U.S. Average: $3.64/g)
• June 8, 2012: $3.34/g (U.S. Average: $3.55/g)
• June 8, 2011: $3.61/g (U.S. Average: $3.74/g)
• June 8, 2010: $2.57/g (U.S. Average: $2.69/g)

Neighboring areas and their current gas prices:

• Roanoke- $1.73/g, up 8.8 cents per gallon from last week’s $1.64/g.
• Richmond- $1.75/g, up 2.2 cents per gallon from last week’s $1.73/g.
• West Virginia- $1.96/g, up 3.1 cents per gallon from last week’s $1.93/g.