National Gas Price Average Inches Up for First Time in Three Months 

January 14, 2019 - At a penny more expensive on the week, the national gas price average ($2.25) increased for the first time since October. Despite the increase, today’s average is still cheaper month-over-month (-14 cents) and year-over-year (-28 cents).

“The price of crude oil has been slowly, but steadily increasing since the beginning of the year, which is starting to push up pump prices,” said Marilyn Buskohl, AAA spokesperson. “The price per barrel (WTI) increased $3 from last Monday to close on Friday to settle at $51 per barrel.”

South Dakota Average Gas Prices:

Last week saw not only more expensive crude oil, but a sizeable build in U.S. gasoline stocks and a small increase in demand. Overall demand has been low lately, contributing to the growth in stocks and helping to keep gas prices lower despite increasing crude prices. 

Quick Stats

• The nation’s top 10 largest monthly decreases are: Montana (-33 cents), Idaho (-32 cents), Colorado (-32 cents), Wyoming (-31 cents), Utah (-29 cents), Hawaii (-27 cents),South Dakota (-24 cents), North Dakota (-22 cents), New Mexico (-21 cents) and Minnesota (-20 cents).
• The nation’s top 10 largest yearly decreases are: Michigan (-57 cents), Illinois (-53 cents), Iowa (-49 cents), Indiana (-48 cents), Wisconsin (-45 cents), Nebraska (-45 cents), Ohio (-44 cents), Kentucky (-43 cents), Minnesota (-41 cents) and Kansas (-40 cents).

Great Lakes and Central

Pump prices are rising across the Great Lakes and Central states with Ohio (+8 cents), Indiana (+8 cents), Missouri (+7 cents), Michigan (+6 cents), Iowa (+6 cents) and Kentucky (+4 cents) seeing the largest jumps in the region on the week. With these increases, many states’ averages have surpassed the $2/gal mark except for Missouri ($1.89) and Kansas ($1.97), though motorists can still find gas below the $2/mark in many states in the region.

For the sixth straight week, gasoline inventories built, adding a staggering 2.7 million bbl in the latest Energy Information Administration (EIA) report. Total stocks sit at 57 million bbl – a 4 million bbl year-over-year surplus.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI decreased $1.00 to settle at $51.59. Although they ended down for the day, crude prices increased overall last week due to optimism that the trade tensions between China and the U.S. may be subsiding.

Reduced trade volatility will likely help curtail stalled global economic growth that could have reduced global demand for crude. Moreover, with OPEC’s global pact with large non-OPEC crude producers (including Russia) to reduce crude production by 1.2 million b/d for at least the first six months of 2019 now in effect, the global glut of crude is expected to decline, helping to push crude prices higher. If crude prices continue to climb, motorists will likely see gas prices follow suit. 

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

AAA provides automotive, travel, and insurance services to 59 million members nationwide and over 100,000 members in South Dakota.  AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years.  AAA is a non-stock, non-profit corporation working 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 (AAA.com/mobile) for iPhone, iPad and Android.  For more information, visit www.AAA.com.