The Week

Local gas prices have been on a bit of a merry-go-round ride since the start of 2020. Low demand for gasoline, an increase in crude oil supply and tumbling crude prices have the potential to push gas prices lower. Drivers could continue to experience volatility in the coming days and weeks due to further oil market effects from refinery maintenance season, the mid-March switch to summer-blend gasoline and the coronavirus.

Today’s national gas price average is $2.45, down one cent in the last week, down five cents in the last month and up four 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 $44.76 per barrel, a whopping $8.62 lower than last Friday’s close. Crude oil prices were on the rise until the start of this week but have since dropped by 13% (since Monday’s close of $51.43). The market continues to feel the effects of the spread of the coronavirus and how that could slow oil and gas consumption. Overall, oil has dropped almost 27% since the start of 2020. China is the epicenter of the virus outbreak and is the largest purchaser of oil in the world. As the Chinese economy takes a hit, so does their need for oil. With oil demand pushing lower, crude prices are following.

The Weekend

“Local gas prices have been on a bit of a merry-go-round ride since the start of 2020,” says John B. Townsend II, manager of Public and Government Affairs for AAA Mid-Atlantic. “Pump prices in the week ahead could see further volatility depending on movement of the oil market as well as U.S. gasoline demand and stock level numbers.”

The Week Ahead

The effects of a huge fire at a Carson, California oil refinery late Tuesday night are being watched for the potential to increase gas prices on the West Coast. Depending on the extent of the damage and the amount of time it will take for the refinery to get back up and running will come into play at the pump, particularly in California. The price jump could be stifled a bit because of the lower crude prices currently seen in the market and the low demand for gasoline at this time of year.

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, March 6, 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