AAA Gas Price Update: Falling Oil Prices Lower Pump Prices, Below $4 a Gallon in Kentucky
This week, the national average for a gallon of regular gasoline fell 5 cents to $4.27. According to new data from the Energy Information Administration (EIA), total national gasoline inventories fell by 3.6 million barrels to land at 241 million barrels last week.
Gasoline demand also fell slightly, from 8.96 million barrels per day to 8.94 million barrels per day. Lower gas demand is contributing to lower prices, but the impact is not as significant as the recent downward movement in oil prices, which is creating greater downward pressure on oil prices. pump.
If the price of oil continues to fall, prices at the pump will likely follow. The impact of the expected increase in demand as the summer travel season looms will also be one to watch over the coming weeks.
At the close of Wednesday’s official trading session, WTI was down $1.40 to settle at $95.04. Since then, it has rebounded slightly (just over 1%) and currently sits at $96.11.
Why the inversion?
The reason for the sudden change of course is likely a reaction to China announcing new lockdowns alongside rising COVID-19 infection rates. The price of oil has fallen on market concerns about falling demand for crude oil, as was the case in 2020 when countries sought to reduce COVID-19 transmission rates.
Additionally, the EIA reported that total national crude inventories increased by 4.3 million barrels last week to 415.9 million barrels. The recent growth in total domestic crude inventories is also contributing to the current decline in crude prices.
The national average for a gallon of regular unleaded is $4.27. That’s 6 cents less than a week ago, but still 74 cents more than a month ago and $1.39 more than a year ago at this time.
The average in Kentucky sits at $3.99, a penny lower than Friday and 6 cents lower than a week ago. The Kentucky average is 76 cents higher than a month ago and $1.22 higher than this time last year.
AAA offers the following tips to help drivers ease some of the pain they feel at the pump:
• Keep your vehicle in perfect condition with routine inspections. Make sure your tires are properly inflated. Under-inflated tires affect fuel economy. Check tire pressure at least every two weeks and more often when temperatures fluctuate.
• Map your route before setting off to minimize unnecessary reversals and backtracking. Avoid peak hours and go to “one-stop shops” if possible where you can multi-task (banking, shopping, etc.).
• Fuel economy peaks at approximately 80 km/h on most cars, then decreases as speed increases. Reducing highway speed by 5-10 mph can increase fuel economy by up to 14%.
• A car engine consumes a quarter to a half gallon of fuel per hour at idle, but a warm engine only takes about 10 seconds of fuel to restart. If safe to do so, turn off your engine if you plan to stand still for more than a minute.
• Use the “fast pass” or “express” toll lanes to avoid unnecessary stops or slowdowns on the highway.
• Use only premium gasoline in vehicles who recommend or require it. Paying premium gasoline for a vehicle that runs regularly is a waste of money and of no benefit to the vehicle.