Gas prices continue to fall: Will trend continue through the New Year?

Virginia gas prices have fallen 1.8 cents per gallon in the past week, averaging $3.17/gallon today, according to GasBuddy’s daily survey of 4,081 stations in Virginia.

Gas prices in Virginia are 10.9 cents per gallon lower than a month ago and stand $1.08/gallon higher than a year ago.

The national average price of gasoline has fallen 2.9 cents per gallon in the last week, averaging $3.30/gallon today. The national average is down 11.1 cents per gallon from a month ago and stands $1.09/gallon higher than a year ago.

Analysis

“For yet another week, average gasoline prices continue to fall as omicron cases surge, leading oil demand, and thus oil prices, to stall. The decline in gas prices will likely continue until new Covid cases slow down,” said Patrick De Haan, head of petroleum analysis for GasBuddy.

“With gas prices very likely to continue declining this week in most states, we may see Christmas gas prices fall just under their all-time high on the holiday, which was $3.26 in 2013. Beyond Christmas, with omicron cases likely to continue climbing, I do believe we’ll see a more noticeable hit on gasoline demand once the holidays are over. There’s a rising likelihood that we won’t see gas prices rising for the rest of the year – with one caveat – gas prices in the Great Lakes states have plummeted by 30 to 50 cents in some areas, and stations in those areas may raise prices slightly should oil prices slow their decline. Aside from those areas, declines at the pump are likely to continue as we close out 2021.”

Trends

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

• December 20, 2020: $2.09/g (U.S. Average: $2.21/g)
• December 20, 2019: $2.35/g (U.S. Average: $2.56/g)
• December 20, 2018: $2.18/g (U.S. Average: $2.35/g)
• December 20, 2017: $2.24/g (U.S. Average: $2.43/g)
• December 20, 2016: $2.13/g (U.S. Average: $2.25/g)
• December 20, 2015: $1.84/g (U.S. Average: $1.99/g)
• December 20, 2014: $2.31/g (U.S. Average: $2.41/g)
• December 20, 2013: $3.14/g (U.S. Average: $3.21/g)
• December 20, 2012: $3.10/g (U.S. Average: $3.21/g)
• December 20, 2011: $3.13/g (U.S. Average: $3.21/g)

Neighboring areas and their current gas prices:

• Roanoke- $3.11/g, down 1.4 cents per gallon from last week’s $3.12/g.
• Richmond- $3.16/g, down 1.5 cents per gallon from last week’s $3.17/g.
• West Virginia- $3.24/g, down 3.7 cents per gallon from last week’s $3.27/g.

GasBuddy data is accessible at prices.GasBuddy.com.