WASHINGTON, D.C. (June 27, 2024)—The national average shook off nearly three weeks of stagnation, moving a nickel higher since last week to hit $3.50. The move came as the cost of oil crossed the $80 per barrel mark, putting upward pressure on pump prices. With oil costs accounting for about 54% of what you pay at the pump, more expensive oil usually leads to more expensive gas.
“Summer got off to a slow start last week with low gas demand,” said Andrew Gross, AAA spokesperson. “But with a record 60 million travelers forecast to hit the road for the July 4th holiday, that number could pop over the next ten days. But will oil stay above $80 a barrel, or will it sag again? Stay tuned.”
Several states will adjust fuel taxes and fees starting Monday, July 1. Indiana is increasing the tax on gasoline/gasohol by a cent to 35cts/gal. Virginia increased the tax on gasoline, gasohol, and alternative fuels such as CNG and LNG by a penny to 30.8cts/gal. However, Michigan will keep the current gas tax rate at 18.8cts/gal while reducing the clear diesel fuel and kerosene tax from 21.3cts/gal to 20.4cts/gal.
According to new data from the Energy Information Administration (EIA), gas demand fell 9.38 million b/d to 8.96 last week. This demand level is about 240,000 b/d below the same week of last year. Meanwhile, total domestic gasoline stocks rose from 231.2 to 233.9 million barrels. Low gasoline demand and increasing supply may help counter higher oil costs, slowing any rise in pump prices.
Today’s national average is $3.50, nine cents less than a month ago and six cents less than a year ago.
Quick Stats
The nation’s top 10 most expensive markets are California ($4.80), Hawaii ($4.71), Washington ($4.21), Oregon ($4.07), Nevada ($4.04), Alaska ($3.90), Illinois ($3.88), Michigan ($3.70), Washington DC ($3.66), and Indiana ($3.65).
The nation’s top 10 least expensive markets are Mississippi ($2.91), Louisiana ($3.01), Arkansas ($3.01), Oklahoma ($3.08), Alabama ($3.09), Texas ($3.10), Kansas ($3.10), Tennessee ($3.12), Missouri ($3.12), and South Carolina ($3.21).
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI rose seven cents to $80.90 a barrel, up from $78.50 two weeks earlier. The EIA reports that crude oil inventories increased by 3.6 million barrels from the previous week. At 460.7 million barrels, U.S. crude oil inventories are just 2% below the five-year average for this time of year.
Please note that with Independence Day next Thursday, the gas report will return on 7/11.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
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