AAA Mid-Atlantic: Year-End Pump Prices to be Most Expensive Since 2014

Prices around the Philadelphia region are 41 cents higher than this time last year

PHILADELPHIA, PA (November 27, 2017) – This December motorists will not find significant holiday savings at the gas pump. Today’s national gas price average is $2.51, which is 38 cents more than this time last year. While AAA does expect gas prices to decline between now and the end of the year, motorists will still pay the highest November and December gas prices since 2014.

“Despite a forecasted five to 20 cent decrease in the coming weeks, motorists will see higher than expected December gas prices, especially compared to year-end prices from 2015 and 2016,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “Driving factors for cheaper gas prices this winter include colder temperatures, the threat of inclement weather and online shopping.”

In 2017, gas prices have strayed from typical trends. Historically, year-end gas prices tend to be relatively cheap due to a drop-off in fall gasoline demand around Labor Day and the move to cheaper to produce winter-blend gasoline in mid-September. This year, the typical factors that drive gas prices down in winter were outweighed by the impact of two major hurricanes, steady consumer demand and continued growth in gasoline exports.

2017 Local Gas Price “Highs and Lows”

	11/27/2017	2017 High Price	2017 Low Price	Year Ago
Philadelphia 5-county	$2.74	$2.95	$2.45	$2.33
Pennsylvania	$2.77	$2.91	$2.43	$2.35
South Jersey	$2.49	$2.74	$2.17	$2.14
New Jersey	$2.56	$2.80	$2.26	$2.21
Delaware	$2.42	$2.70	$2.14	$2.11
National	$2.51	$2.67	$2.23	$2.13

2017’s Tumultuous Trends

• Highs and Lows: Summer driving season traditionally brings the highest gas prices of the year and year-end brings the lowest, but not this year:
• 2017 High: $2.67 on September 11
• 2017 Low: $2.23 on July 5
• Exports: According to the Energy Information Administration (EIA), in the first half of 2017 U.S. exports of total motor gasoline averaged a record high of 756,000 barrels per day (b/d), a three percent increase from the first half of 2016. The second half of 2017 has seen this trend continue to climb, with exports peaking to one of their highest points in 2017 – 906,000 b/d – last month.
• Production: According to Baker Hughes, Inc., the total oil rig count is currently 747, which is 273 more rigs than last year’s count at this time. The U.S. oil rig count has increased steadily to new records.

Many motorists in the Mid-Atlantic and Northeast region have seen sizeable price increases at the pump during November, as current gasoline inventories were sitting at their lowest inventory points for this time of year since 2014. The increases were likely due to a lack of gasoline imports that has contributed to tighter than usual supply in the region. However, pump prices in the last week have started to decline and will continue to drop, especially if imports move into the region.

Gas Station Stats Nationwide and State-by-State

Today, motorists can find gas for $2.50 or less at 63 percent of gas stations nationwide. Here is a breakdown state-by-state for the percentage of gas stations selling regular unleaded gasoline for $2.51 or more.

State	Year-to-Date Average	Percentage of Gas Station Selling over $2.51
Pennsylvania	$2.61	100%
New Jersey	$2.42	57%
Delaware	$2.30	4%

A Look Ahead to 2018

Motorists can expect gas prices to continue to trend cheaper the first few months of 2018, with potential to see the national gas price average in the $2.25-$2.35 range by February. The Organization of the Petroleum Exporting Countries’ (OPEC) November 30, 2017 meeting and any decisions to further cut or keep production rates stable will influence longer-term forecasts for 2018.

New Tools and Enhancement Unveiled at GasPrices.AAA.com

In time for year-end road trip planning, AAA has added new tools to GasPrices.AAA.com to provide more comprehensive gas price data and insight to motorists and journalists.

• National-level enhancements
• AAA now provides the daily E-85 national average (in addition to regular, mid-grade, premium and diesel gas price averages)
• Top Trends page allows visitors to sort data (high to low pricing, by date)
• Directional colored arrows easily identify changes – increases (red); decreases (green); or no change (grey).
• State metro level gas price queries.
• State-level enhancements
• More comprehensive state gas prices, with the addition of 175 new metropolitan areas and corresponding gas prices, state coverage is more comprehensive.
• Heat maps identify county gas price averages.
• New “State Gas Price Averages” page provides an overview of each state’s daily gas price for regular, mid-grade, premium and diesel fuel.
• Data can be sorted alphabetically by state name or highest/lowest price by fuel grade.

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. 
     

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AAA provides automotive, travel and insurance services to 57 million members nationwide and more than three million members in Pennsylvania.  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 www.AAA.com.