The Week

Local drivers are spending another week seeing very little change at the pump as the summer driving season wraps up. The gas price average in the District of Columbia is $2.27, unchanged in the last week and down 53 cents from a year ago. The gas price average in the Washington, D.C. metro area is $2.16, unchanged in the last week and down 45 cents from this date last year.

Today’s national gas price average is $2.17, down a penny in the last week, down two cents 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)

In the latest weekly report from the Energy Information Administration (EIA), gas demand increased slightly, but is still lower than last year. Lower demand has helped to keep pump prices stable, as total domestic gasoline stocks are also holding steady.  

Educators, students and parents in the Washington metro area are responding to the ongoing COVID-19 crisis besetting the region, nation and globe. For this reason, AAA sees the potential for pump prices to drop heading into autumn, as many area schools choose to conduct classes virtually.

As the Oil Price Information Service (OPIS) forecasts, “Between the start of a new school year, continued telecommuting and difficult economic conditions, that could grow dire for many in the absence of new government stimulus, gasoline consumption levels lifted by summer vacation travel are likely to retreat.”

Yet demand for fuel hit a high not seen since mid-March, notes OPIS. That’s “when COVID-19 spurred lockdowns began cutting deeply into consumers’ travel and daily routines.” Traffic volume is on the upward trend across the Washington metro area these days, although many workers in the region continue to work remotely and telecommute. On freeways in Maryland, for example, “traffic volumes are now reaching 80-85 percent of pre-pandemic levels,” reports the Maryland Transportation Institute at the University of Maryland.

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $42.01 per barrel, 79 cents higher than last Friday’s close. Crude prices ended lower Thursday after the International Energy Agency reduced its outlook for 2020 global oil demand. Additionally, domestic crude prices have been impacted this week by EIA’s weekly report, which revealed that total domestic inventories decreased. So far, the minimal fluctuations in crude prices have not had a noticeable impact on pump prices, but if prices increased to $45 per barrel for a prolonged period of time, consumers could see gas prices at their local stations increase.

The Weekend

“The first two weeks of August are pricing out to be the second cheapest start to the month in more than a decade,” said John B. Townsend II, AAA Mid-Atlantic’s Manager of Public and Government Affairs. “Gas prices have high potential to push cheaper, especially with many school districts planning for virtual learning. This could drive demand down in the weeks ahead as school starts at-home.”

The Week Ahead

The EIA reports U.S. regular gasoline retail prices averaged $2.18 per gallon in July, an increase of 10 cents per gallon from the average in June, but 56 cents a gallon lower than at the same time last year. EIA expects that gasoline prices will gradually decrease through the rest of the summer to reach an average of $2.04 a gallon in September before falling to an average of $1.99 a gallon in the fourth quarter. The EIA is forecasting U.S. regular gasoline retail prices will average $2.23 a gallon in 2021, compared with an average of $2.12 a gallon in 2020.

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 21, 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