The Week

Since mid-May, gasoline demand has increased, steadily pushing local and national gas price averages up. The upsurge in the demand for gasoline is a byproduct of the continuing increase in traffic and travel volume on roadways and freeways across the United States. That was the case last week, June 6 –June 12, 2020, “despite Tropical Storm Cristobal impacts,” explains INRIX.

“It has been thirteen weeks, more than a quarter of a year, since travel began its noticeable decline nationwide,” notes INRIX’s weekly review of changes in road traffic demand in the United States from the COVID-19 virus spread. The gas price average in the District of Columbia is $2.20, which is up two cents in the last week, but still down 59 cents from a year ago. The gas price average in the Washington, D.C. metro area is $2.08, which is up two cents in the last week, but down 55 cents from this date last year. During the week ending June 12, personal travel dipped in the Washington metro area, compared to the previous week – 25% (30% last week) – INRIX is reporting.

Today’s national gas price average is $2.11, up two cents in the last week, up 23 cents in the last month and down 56 cents from this time last year. Passenger travel continued to trend upwards over the past week (June 6 –June 12, 2020), according to INRIX’s U.S. National Volume Synopsis report for week 13.  As a case in point, “The daily figure for Friday, June 11^th was 96%, a figure last seen on Friday, March 13^th, the day nationwide travel decline began,” explains INRIX.

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 $39.75 per barrel, $3.49 higher than last Friday’s close. Domestic crude prices have increased amid greater market focus on compliance with the production reduction agreement between the Organization of the Exporting Countries (OPEC) and its partners, including Russia, which has worked to cut global crude production by 9.7 million barrels per day since May 1, 2020. It remains unclear if OPEC’s agreement will extend into August; it is currently set to expire at the end of July.

The Weekend

“As Americans drive more, they are re-fueling gasoline demand levels, which is helping to lift pump prices locally and nationally. That’s reflected in the fact that, ‘Personal travel increased overall again this week, with 91 of the 98 metropolitan areas tracked increasing in Week 13,’ notes INRIX. However, the Washington metro area saw a slight decrease in personal travel trends during the latest reporting period,” John B. Townsend II, manager of Public and Government Affairs for AAA Mid-Atlantic. “Higher demand will contribute to increasing gas prices in the coming weeks, but motorists shouldn’t expect the typical summer gas price spike, as demand won’t be sufficient enough to drive down gasoline stocks levels.”

The Week Ahead

According to new data from the Energy Information Administration (EIA), gas demand decreased slightly last week. As demand decreases, alongside healthy domestic gasoline stock levels at 257 million barrels, slower pump price increases will likely continue through the end of the month. 

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, June 26, 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