LEXINGTON, Ky. — Motorists saw plenty of savings at the pump from Memorial Day through Labor Day. The national gas price average during the unofficial start and stop to summer was $2.15―the cheapest since 2004. Due to the coronavirus pandemic, demand was decimated this summer, which ultimately meant increased supply and cheap gas prices.
That trend continues. In its latest report, the Energy Information Administration (EIA) reported that demand dropped from 9.16 million barrels per day to 8.79 barrels per day. While gasoline stocks dropped by 4.3 million barrels to 234.9 million barrels, total supply is 5.2 million barrels more than this time last year.
“Summer may be fading into the rearview mirror, but less expensive gas prices are not,” said Lori Weaver Hawkins, public and government affairs manager, AAA Blue Grass. “Moving into fall we traditionally see a drop in demand and further savings at the pump. This year that means pump prices could possibly push even lower then we’ve already seen in 2020.”
On the week, the average gas price in Kentucky dropped 6 cents, joining a majority of state averages that are cheaper by a few cents. A few states in the central region saw more significant price drops ranging from a nickel to a dime. The small handful of states with increases saw a jump of just penny or two, with the exception of Florida (+6 cents).
At $2.21, today’s national average is two cents less than last week, one penny more than last month and 35 cents cheaper than a year ago.
Gas prices mostly lower around the Bluegrass
Today’s average of $2.02 in Kentucky is down 6 cents from last week, but up 2 cents from a month ago. Today’s gas price in Kentucky is well below the average of $2.33 seen a year ago. In Lexington, the average price is at $1.97, down 8 cents from last week. That’s just 1 cent higher than a month ago.
Most communities have seen gas prices fall in the past week. In Nicholasville, the average price is down 6 cents, now at the $1.94 mark. Georgetown is down 10 cents, now averaging $1.91. Versailles is down just 2 cents to land at $2.08, while Winchester is down 8 cents to land at $1.88, the lowest prices in the immediate area. Richmond is down 7 cents, landing at $2.01.
- The nation’s top 10 largest weekly decreases: Ohio (-11 cents), Indiana (-9 cents), Kentucky (-6 cents), Michigan (-6 cents), Wisconsin (-5 cents), North Carolina (-4 cents), Illinois (-4 cents), South Carolina (-4 cents), Washington, D.C. (-3 cents) and Oklahoma (-3 cents).
- The nation’s top 10 least expensive markets: Mississippi ($1.88), Texas ($1.89), Oklahoma ($1.90), Louisiana ($1.91), Arkansas ($1.91), Missouri ($1.92), Alabama ($1.93), South Carolina ($1.96), Tennessee ($1.96) and Kansas ($2.00).
Oil market dynamics
At the end of Friday’s formal trading session, the benchmark West Texas Intermediate (WTI) decreased by $1.60 to settle at $39.77 per barrel. The price of crude decreased in reaction to a decline in the stock market at the end of last week. The price decreased despite EIA’s weekly report revealing that total domestic crude inventories dropped by 9.4 million barrels, lowering total domestic stocks to 498.4 million barrels. For this week, crude prices could decline further if crude demand concerns arise amid another stock market downturn.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.