The Week

Inertia. Motorists in the District of Columbia and Washington, D.C. metro area saw little movement when it comes to pump prices with both within three cents of last week’s prices.

The gas price average in the District of Columbia is $2.27, which is down three cents in the last week and down 58 cents from a year ago. The gas price average in the Washington, D.C. metro area is $2.16, which is down a penny in the last week and down 49 cents from this date last year.

Today’s national gas price average is $2.18, unchanged in the last week and the last month, and down 51 cents from this time last year. That is the case “although oil prices reached a five-month high earlier this week,” reports the Oil Price Information Service (OPIS). “But uncertainty surrounding consumer demand and the strength of the economy continue to plague the market,” OPIS notes.

                                       CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)

“While the coronavirus disease 2019 (COVID-19) cases continue at high levels in many areas across the United States, gasoline demand hasn’t seen a significant downturn even if a recovery to 2019 levels has slowed,” explains Steve Cronin, an analyst with the Oil Price Information Service (OPIS). “Preliminary data from OPIS DemandPro shows gasoline demand in the United States during the week ending August 1 was about 16.6% lower than at the same time in 2019. That's the second-lowest year-on-year deficit seen since demand crashed at the start of the COVID-19 pandemic.”

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $41.22 per barrel, 95 cents higher than last Friday’s close. Even though crude oil supplies decreased for a second week, oil futures posted the highest close since March on Wednesday ($42.19). Prices fluctuated the rest of the week following the news that gasoline inventories showed an unexpected rise which nods toward a decrease in gasoline demand.

The Weekend

“This summer is no doubt the cheapest at the pump for motorists in more than a decade. The last two months have yielded a national average of $2.14,” said John B. Townsend II, AAA Mid-Atlantic’s Manager of Public and Government Affairs. “While we expect to see typical fluctuation, August gas prices are not expected to spike, especially amid increases in COVID-19 cases.”

The Week Ahead

In the new weekly report from the Energy Information Administration (EIA), gas demand fell from 8.8 million b/d to 8.6 million b/d. Decreasing demand for gasoline has helped pump prices to stabilize, and if demand continues to drop, pump prices could push cheaper in the coming week.

AAA has a variety of resources to help motorists save on fuel:

• Shell Fuel Rewards Program for AAA Members: (https://www.AAA.com/Shell) gives AAA members nationwide a discount on gasoline at Shell stations when they join the Fuel Rewards® program.

• Fuel Price Finder (https://www.AAA.com/fuelfinder) locates the lowest fuel price in your area. 

• AAA Gas Cost Calculator (https://gasprices.aaa.com/aaa-gas-cost-calculator/) helps budget travel expenses. 

• TripTik Mobile (https://www.aaa.com/mobile) plots fuel prices along your travel route. 

• AAA's Member Rewards Visa® Credit Card (https://www.AAA.com/financial/AAAvisa.htm) accumulates double points on fuel purchases.  

Next Weekend Gas Watch: Friday, August 14, 2020

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AAA provides automotive, travel and insurance services to 60 million members nationwide and nearly 82,000 members in the District of Columbia.  AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years.  The not-for-profit, fully tax-paying member organization works on behalf of motorists, who can now map a route, find local gas prices, discover discounts, book a hotel and track their roadside assistance service with the AAA Mobile app for iPhone, iPad and Android. For more information, visit  https://aaa.com