AAA Mid-Atlantic: Low Gas Demand Contributes to Decrease in National and Local Gas Price Averages

The Week
Drivers in the Philadelphia 5-county area, South Jersey and Delaware saw prices at the pump continue to decline this week. In the new weekly report from the Energy Information Administration (EIA), gas demand saw a slight uptick however, it is still lower than where it was at this time last year. Lower demand has helped pump prices decline this week, and will likely help pump prices continue their descent as fall approaches. Local prices are at least 25 cents less per gallon than one year ago.

Today’s national gas price average is $2.18, down two cents in the last week, up a penny in the last month, and down 47 cents from this time last year.

CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline (*indicates record high) 

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $41.11 per barrel, $3.78 higher than last Friday’s close. Domestic crude prices increased after EIA’s weekly report revealed that total domestic crude inventories decreased last week which could signal that supply and demand are beginning to rebalance, even as crude production grew last week. Crude prices may continue to increase if supplies grow tighter, but demand challenges could contain potential growth in prices.

The Weekend
“Typically lower supply levels translate into higher pump prices. However, even with consistent declines in gasoline stocks, that’s just not the case right now,” says Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “Despite the steady supply dip, continued low levels of demand helped push local and national gas prices cheaper on the week.”

The Week Ahead
Mid-September is when gas stations make the switch to winter-blend gasoline, which is less expensive to produce than summer-blend gasoline. The difference between the two blends comes down to Reid Vapor Pressure (RVP), which is a measure of how easily the fuel evaporates at a given temperature. The higher – or more volatile – the RVP, the more able it is to evaporate at low temperatures. Winter-blend has a higher RVP which allows the fuel to evaporate at low temperatures for the engine to operate properly, especially when the engine is cold.

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.

AAA is the most comprehensive resource for gas prices. Unlike the Lundberg Survey of 7,000 gas stations, AAA reports reflect actual prices from credit card transactions at more than 100,000 gas stations in the U.S.

Next Weekend Gas Watch: Friday, September 25, 2020

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AAA provides automotive, travel and insurance services to 60 million members nationwide and more than 3.2 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 appss for iPhone, iPad and Android.  For more information, visit www.AAA.com.