With nickel rising on the week, the national average gas price hit $ 2.77, a jump of 31 cents last month. Each state’s average has climbed double digits since February, resulting in 1 in 10 gas stations with pump prices of $ 3 / gallon or more.
Here in the Commonwealth, however, the $ 2.60 average allows Kentucky to join Kansas, Oklahoma and Montana as the 11th cheapest markets in the country. Today’s Kentucky average is up 4 cents from a week ago and up 38 cents from a month ago. Meanwhile, the average price in Lexington hit $ 2.64, up 8 cents from last week.
Prices at the pump are rising as refinery use is at an all-time low and crude oil (WTI) prices jumped more than $ 2 a barrel to land at $ 66 a barrel on Friday, the lowest price. higher for almost two years. The rise in crude followed an unforeseen decision by the Organization of the Petroleum Exporting Countries (OPEC) and their allies, collectively known as OPEC +, to minimize production in April.
“With crude oil prices returning to the upside, we could see the national average climb towards $ 2.90 this spring with some relief in early summer,” said Lori Weaver Hawkins, head of public affairs and government, AAA Blue Grass. “The last time we saw the national average flirt with $ 3 was almost three years ago, in May 2018. At that time, crude was averaging $ 71 a barrel.”
The Energy Information Administration (EIA) report for the week ending February 26 shows a refining capacity of 56%, the lowest rate recorded by the agency. It is also 12 percentage points lower last week and 18 percentage points lower than a year ago. EIA data also indicates a decline in gasoline inventories to 243.4 million barrels, 3.5% below levels at the end of February 2020.
With refinery utilization at an all time high, gasoline supply tightening, demand slightly increasing, and crude prices rising, cheap prices are in the mirror for the immediate future.
The current national average is almost 40 cents more expensive than a year ago, which was just before state shutdowns and work / home school began.
The AAA Daily Fuel Gauge Report is the most comprehensive survey of U.S. gas prices available from any source. Over 100,000 self-service stations are polled daily in the nonprofit organization’s compilation report, compared to other sources of for-profit pricing reports that rely on customer feedback or on surveys from a limited number of stations only.
Weaver Hawkins recalls that motorists can find current gas prices along their route using the free AAA Mobile app for iPhone, iPad and Android. Motorists can also get an estimate of gasoline costs when planning a trip.
The app can also be used to plot a route, find discounts, book a hotel, and access AAA roadside assistance. Learn more at AAA.com/mobile. Gasoline prices reported by AAA reflect what is actually paid at the pump and are not dependent on customers reporting prices reliably or based on a small sample of pumps.
Today’s Kentucky average of $ 2.60 is 4 cents higher than last week and 29 cents higher than a month ago. The current price of gasoline in Kentucky is now a dime higher than the Commonwealth average of $ 2.22 seen a year ago. This is the story of this week in many parts of the Bluegrass.
In Lexington, the average price continues to rise rapidly, up 8 cents from last week to land at $ 2.64. This is 28 cents more than a month ago.
Surrounding communities also saw gasoline prices rise last week, some by as much as 20 cents. In Nicholasville, the average price is up 8 cents, now at $ 2.57. Georgetown is also up 8 cents, now averaging $ 2.67. Versailles is up 14 cents to land at $ 2.70, while Winchester is up 13 cents to land at $ 2.68. Richmond is up 8 cents, landing at $ 2.68.
• The 10 cheapest markets in the country: Mississippi ($ 2.44), Louisiana ($ 2.47), Texas ($ 2.50), Missouri ($ 2.50), South Carolina ($ 2.51 ), Alabama ($ 2.51), Arkansas ($ 2.55), Tennessee ($ 2.57) North Carolina ($ 2.57) and Georgia ($ 2.59).
As the official Friday trading session closed, WTI rose $ 2.26 to $ 66.09. At the end of last week, OPEC + announced the decision to add only about 170,000 barrels per day to world markets in April. The industry expected production to increase by about 1.5 million barrels per day in April, with more oil released in May, June and beyond. The move propelled crude oil to the highest price point since April 2019. For this week, prices could continue to rise if the market remains bullish on demand for crude as vaccines spread.
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 plot a route, find discounts, book a hotel, and access AAA roadside assistance. Learn more at AAA.com/mobile.
AAA Blue Grass