Gas prices continue downward trajectory: Future trends?

Virginia gas prices have fallen 2.2 cents per gallon in the past week, averaging $3.20/gallon today, according to GasBuddy’s daily survey of 4,081 stations in Virginia.

Gas prices in Virginia are 9.5 cents per gallon lower than a month ago and stand $1.11/gallon higher than a year ago.

The national average price of gasoline has fallen 2.4 cents per gallon in the last week, averaging $3.32/gallon today. The national average is down 9.0 cents per gallon from a month ago and stands $1.18/gallon higher than a year ago.

Analysis

“With the price of crude oil remaining some $13 per barrel below its 2021 peak, we have continued to see gas prices decline in nearly every city coast to coast, a trend that will likely continue into yet another week,” said Patrick De Haan, head of petroleum analysis for GasBuddy.

“Omicron concerns continue to be the primary catalyst for the drop in gas prices across much of the country. While we’ve seen some anecdotal reports about the new variant, vaccine producers have yet to definitively state if current vaccines will still bring adequate protection against omicron- something that might be critical to limit severity and to avoid new shutdowns. With OPEC+ members still planning to boost oil production in January, we continue to see global oil production slowly rising. In addition, U.S. gasoline demand last week fell to the lowest level since October, which may limit oil’s recent rebound and keep gas prices declining through the end of the year.”

Trends

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

• December 13, 2020: $2.09/g (U.S. Average: $2.14/g)
• December 13, 2019: $2.33/g (U.S. Average: $2.57/g)
• December 13, 2018: $2.24/g (U.S. Average: $2.39/g)
• December 13, 2017: $2.27/g (U.S. Average: $2.45/g)
• December 13, 2016: $2.11/g (U.S. Average: $2.22/g)
• December 13, 2015: $1.85/g (U.S. Average: $2.01/g)
• December 13, 2014: $2.44/g (U.S. Average: $2.56/g)
• December 13, 2013: $3.18/g (U.S. Average: $3.24/g)
• December 13, 2012: $3.15/g (U.S. Average: $3.29/g)
• December 13, 2011: $3.16/g (U.S. Average: $3.26/g)

Neighboring areas and their current gas prices:

• Roanoke- $3.12/g, down 6.1 cents per gallon from last week’s $3.18/g.
• Richmond- $3.18/g, down 1.8 cents per gallon from last week’s $3.19/g.
• West Virginia- $3.26/g, down 2.6 cents per gallon from last week’s $3.29/g.

GasBuddy data is accessible at prices.GasBuddy.com.