Gas prices in Virginia, nationally continue recent surge: Economic recovery pushing prices up

Virginia gas prices have risen 8.4 cents per gallon in the past week, averaging $2.75/gallon today, according to GasBuddy’s daily survey of 4,081 stations in Virginia.

Gas prices in Virginia are 34.9 cents per gallon higher than a month ago and stand 65.7 cents per gallon higher than a year ago.

The national average price of gasoline has risen 5.9 cents per gallon in the last week, averaging $2.86/gallon today. The national average is up 33.2 cents per gallon from a month ago and stands 64.0 cents per gallon higher than a year ago.

Analysis

“As Americans turn optimistic on COVID-19 pandemic recovery, we’ve been seeing insatiable demand for gasoline, which continues to recover far faster than oil production. According to GasBuddy data, last week’s gasoline demand was just 1 percent below the pre-pandemic level, an extremely bullish factor likely to continue driving gas and oil prices up in the short term,” said Patrick De Haan, head of petroleum analysis for GasBuddy.

“The recovery in the last few weeks has been astounding- both the speed and overall volume increases we’ve seen in our data lend credibility to the recovery, and perhaps will lead to continued price increases due to the continued imbalance between supply and demand. It’s no longer a question of if we’ll see gasoline demand return to near normal this year but when, and will oil producers rise to the occasion and be able to quickly ramp up output, or are we going to see the highest summer prices since 2014 until they jump into action?

“Only time will tell, but it’s looking like things are heating up far more than expected since the start of the year.”

Trends

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

• March 15, 2020: $2.10/g (U.S. Average: $2.22/g)
• March 15, 2019: $2.36/g (U.S. Average: $2.54/g)
• March 15, 2018: $2.35/g (U.S. Average: $2.52/g)
• March 15, 2017: $2.09/g (U.S. Average: $2.28/g)
• March 15, 2016: $1.78/g (U.S. Average: $1.94/g)
• March 15, 2015: $2.27/g (U.S. Average: $2.43/g)
• March 15, 2014: $3.28/g (U.S. Average: $3.52/g)
• March 15, 2013: $3.59/g (U.S. Average: $3.69/g)
• March 15, 2012: $3.73/g (U.S. Average: $3.82/g)
• March 15, 2011: $3.48/g (U.S. Average: $3.56/g)

Neighboring areas and their current gas prices:

• Roanoke- $2.69/g, up 10.4 cents per gallon from last week’s $2.59/g.
• Richmond- $2.75/g, up 7.0 cents per gallon from last week’s $2.68/g.
• West Virginia- $2.80/g, up 7.6 cents per gallon from last week’s $2.72/g.

GasBuddy data is accessible at FuelInsights.GasBuddy.com.