Gas Prices Up a Penny as Summer Drivers Finally Catch Up With Supply
CARS.COM — After declining steadily for seven weeks, gas prices rebounded in several parts of the country the past week as high demand during the peak summer driving season temporarily reduced the supply. The AAA Daily Fuel Gauge Report said Thursday that the national average for regular was $2.13 a gallon, a penny more than a week ago. Premium gas also was up 1 cent to $2.64, but diesel fell 2 cents to $2.29.
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AAA cited a U.S. Department of Energy report that said the supply of gasoline showed its largest decline since April, 3.3 million barrels, causing prices to rise in several states. AAA, though, said any supply issues are likely to be temporary and predicted prices could decline again after summer ends.
“Provided the next month does not bring a major market-moving event, like a major hurricane or escalating geopolitical tensions overseas, pump prices are likely to remain at relatively low levels,” AAA said in a statement. “It is even possible that the national average price of gas may dip below $2 per gallon after the summer driving season ends and refineries switch over to less expensive winter-blend gasoline on Sept. 15.”
Low gas prices aren’t expected to last forever. The Energy Information Administration in its latest short-term outlook said it expects regular to average $2.06 a gallon for all of 2016 but increase to an average of $2.26 a gallon during 2017, when it anticipates oil prices rising.
Pump prices climbed by a few cents the past week in several states and by double digits in some others. Statewide averages rose by 10 cents in Missouri, 11 cents in Michigan and 12 cents in Kentucky. Regular gas averaged $2 or less a gallon in a dozen states on Thursday, according to AAA, three fewer than a week ago due to increases in Georgia, Kentucky and Missouri.
Despite widespread price hikes, AAA estimated that more than 40 percent of gas stations were selling regular for less than $2 a gallon; that’s compared with less than 1 percent a year ago when the national average was 45 cents higher. AAA said prices are the lowest they’ve been at this time of year since 2004.
South Carolina had the cheapest gas, with an average of $1.82 for regular, followed by Alabama, $1.87; Mississippi, $1.90; and New Jersey, Tennessee and Virginia, $1.91. Prices were highest in Hawaii, where regular averaged $2.73, followed by California, $2.64; Alaska, $2.60; and Washington, $2.59. Prices fell by 2 to 5 cents in those states the past week.
