Gas prices making push toward $5 per gallon mark

There’s pain at the pump now, and it’s going to get worse, because we’re not far off from a $5 per gallon national gas price average.

“After a blistering week of gas prices jumping in nearly every town, city, state and area possible, more bad news is on the horizon. It now appears not if, but when, we’ll hit that psychologically critical $5 national average,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

Average gasoline prices in Virginia have risen 18.5 cents per gallon in the last week, averaging $4.64 per gallon today, according to GasBuddy’s survey of 4,081 stations in Virginia.

Prices in Virginia are 44.4 cents per gallon higher than a month ago and stand $1.71 per gallon higher than a year ago.

The price of diesel has risen 11.5 cents nationally in the past week and stands at $5.62 per gallon.

The national average price of gasoline has risen 26.0 cents per gallon in the last week, averaging $4.85 per gallon today. The national average is up 56.0 cents per gallon from a month ago and stands $1.81 per gallon higher than a year ago, according to GasBuddy data compiled from more than 11 million weekly price reports covering over 150,000 gas stations across the country.

The odd thing is that demand is only softening, not cratering, with the spike in prices, as inventories continue to decline, De Haan said.

It’s basically Economics 101. Supply is declining, demand is pretty consistent, meaning prices will rise.

“Gasoline inventories continue to decline even with demand softening due to high prices, a culmination of less refining capacity than we had prior to Covid and strong consumption, a situation that doesn’t look to improve drastically anytime soon,” De Haan said. “Nine states have average gas prices that stand beyond the $5 per gallon mark, with more set to join in the days and weeks ahead. In addition, diesel prices also stand at a record high, a second gut-punch to consumers which pushes prices of most goods higher.”

Trends

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

• June 6, 2021: $2.93/g (U.S. Average: $3.04/g)
• June 6, 2020: $1.83/g (U.S. Average: $2.02/g)
• June 6, 2019: $2.52/g (U.S. Average: $2.77/g)
• June 6, 2018: $2.73/g (U.S. Average: $2.94/g)
• June 6, 2017: $2.15/g (U.S. Average: $2.36/g)
• June 6, 2016: $2.20/g (U.S. Average: $2.36/g)
• June 6, 2015: $2.53/g (U.S. Average: $2.76/g)
• June 6, 2014: $3.46/g (U.S. Average: $3.66/g)
• June 6, 2013: $3.37/g (U.S. Average: $3.63/g)
• June 6, 2012: $3.36/g (U.S. Average: $3.56/g)

Neighboring areas and their current gas prices:

• Roanoke- $4.48/g, up 16.7 cents per gallon from last week’s $4.31/g.
• Richmond- $4.65/g, up 23.0 cents per gallon from last week’s $4.42/g.
• West Virginia- $4.63/g, up 16.6 cents per gallon from last week’s $4.46/g.

GasBuddy data is accessible at prices.GasBuddy.com.