Gas prices holding steady despite continued increase in demand

Virginia gas prices have risen 1 cent per gallon in the past week, averaging $2.72/gallon today, according to GasBuddy’s daily survey of 4,081 stations in Virginia.

Gas prices in Virginia are 2.3 cents per gallon lower than a month ago and stand $1.02/g higher than a year ago.

The national average price of gasoline has risen 0.4 cents per gallon in the last week, averaging $2.87/g today. The national average is up 2.0 cents per gallon from a month ago and stands $1.13/g higher than a year ago.

Analysis

According to AAA, cheaper crude oil prices, which are mostly pricing at less than $63 per barrel, and stable and strong refinery utilization (are contributing factors keeping pump price jumps incremental.

On the week, 35 state averages increased with the majority, seeing only one- to three-cent jumps.

Growing market concern that surging coronavirus infection rates in Asia may derail expectations for crude demand recovery helped to reduce prices. Additionally, EIA’s latest weekly report revealed that total domestic crude inventory increased by 600,000 barrels to 493 million barrels, contributing to downward pressure on crude prices.

If market concerns persist this week, crude prices could end the week lower again.

“Last week saw limited upward movement in gas prices, tying the previous high water mark we last saw in March, signaling that perhaps we may see additional upside as most states in the nation have finished the transition to EPA-mandated summer gasoline,” said Patrick De Haan, head of petroleum analysis for GasBuddy.

“While gasoline demand did dip last week for the third straight week according to GasBuddy data, it was yet another small decline, and as temperatures continue to warm ahead of summer, it wouldn’t surprise me that demand will rebound in the weeks ahead and we could continue to see gas prices push higher. For now, however, it doesn’t appear that any rise in price would be significant, so motorists shouldn’t be too concerned at this point, but may see see average prices inch higher,” De Haan said.

Trends

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

• April 26, 2020: $1.70/g (U.S. Average: $1.74/g)
• April 26, 2019: $2.65/g (U.S. Average: $2.89/g)
• April 26, 2018: $2.61/g (U.S. Average: $2.80/g)
• April 26, 2017: $2.22/g (U.S. Average: $2.40/g)
• April 26, 2016: $1.97/g (U.S. Average: $2.14/g)
• April 26, 2015: $2.32/g (U.S. Average: $2.54/g)
• April 26, 2014: $3.51/g (U.S. Average: $3.70/g)
• April 26, 2013: $3.38/g (U.S. Average: $3.50/g)
• April 26, 2012: $3.79/g (U.S. Average: $3.82/g)
• April 26, 2011: $3.80/g (U.S. Average: $3.87/g)

Neighboring areas and their current gas prices:

• Roanoke- $2.63/g, unchanged  from last week’s $2.63/g.
• Richmond- $2.69/g, down 0.3 cents per gallon from last week’s $2.69/g.
• West Virginia- $2.76/g, up 2.6 cents per gallon from last week’s $2.73/g.

GasBuddy data is accessible at FuelInsights.GasBuddy.com.