TOWSON, MD (August 20, 2018) – As summer slows to an end, gas prices across the country are getting less expensive. With the exception of a handful of states, the majority of motorists are seeing slow, but steady pump price drops during the last few weeks.

“Compared to July, consumer demand for gasoline is weaning and prices are following suit,” said Ragina Cooper Averella, Manager of Public and Government Affairs at AAA Mid-Atlantic. “The national average is expected to keep moving lower, especially with the switchover to lower grade gasoline in September.” 

In September, gas stations will start selling winter-blend gasoline. This blend, which is cheaper to produce, contains a fuel that evaporates at low temperatures for vehicle engines to operate properly, especially when the engine is cold.  

Today’s national gas price average is $2.84 gallon, which is two cents less than last week and a penny less than last month, but 50 cents more than this time last year.

Mid-Atlantic and Northeast Gasoline Prices and Supplies

All motorists in the Mid-Atlantic and Northeast are paying one to five cents less this week to fill-up. With a nickel drop, Delaware lands on the region’s top 10 states list with the largest changes in gas prices on the week. Maryland joins Washington, D.C. and Tennessee with the second largest drop in the region of three cents per gallon. Mid-Atlantic and Northeast state gas price averages range from as expensive as $3.05 in Connecticut to as cheap at $2.60 in Virginia.  

Maryland’s average price is $2.80 per gallon, which is three cents less than last week and last month but a 49 cents increase compared to last year on this date.

With a 800,000 barrel draw, gasoline inventory levels for the Mid-Atlantic and Northeast region now sit at 63.2 million barrels, which are the lowest levels reported in the region by the Energy Information Administration (EIA) since early May.

CURRENT AND PAST GAS PRICE AVERAGES 

Regular Unleaded Gasoline

Oil Market Dynamics

At the close of Friday’s formal trading session on the NYMEX, West Texas Intermediate (WTI) crude oil increased 45 cents from the previous day’s close to settle at $65.91 per barrel. Oil prices ended the week with slight gains due to a softening dollar, after tumbling midweek following new data from the EIA that showed domestic crude oil inventories grew by 6.8 million barrels last week.

The unusually high growth in crude inventories caught market observers by surprise, raising concerns that summer demand may be waning. At 414.2 million barrels, crude inventories in the U.S. are about 52 million barrels lower than they were at this point last summer, which has contributed to higher gas prices.  

Domestic crude production topping 10.9 million barrels per day and imports surging to just over 9 million barrels per day gave total crude inventories their boost last week. If these trends continue into this week, crude inventories may show more growth, which would likely push domestic crude prices lower.

In related news, according to Baker Hughes, Inc., the U.S. added no oil rigs last week, leaving the total unchanged at 869. Currently, there are 106 more active rigs this year than last year at this time.

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

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

• AAA Gas Cost Calculator (GasPrices.AAA.com/AAA-gas-cost-calculator/) helps budget travel expenses. 

• TripTik Mobile (AAA.com/mobile) plots fuel prices along your travel route. 

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

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AAA provides automotive, travel and insurance services to 57 million members nationwide and more than 975,000 members in Maryland.  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 AAA.com.