AAA: Good news, bad news on gas prices

June 18, 2018 - South Dakota drivers are finding both good news and bad news at the pump. The good news is that local gas prices continue to drop slightly but the bad news is that many areas are seeing prices between 50 and 60 cents higher than one year ago.

“Drivers may be enjoying a continued drop in gas prices but they shouldn’t get too comfortable with it,” said Marilyn Buskohl, AAA spokesperson. “Motorists can expect to spend an average of $200 more on gas this season, fueled by the price of crude and the high demand for gasoline.”

With strong summer consumer gasoline demand expected in the months ahead, AAA says motorists can expect little relief at the pump with the national gas price average ranging between $2.85 and $3.05 through Labor Day.

On the week, the national gas price average is two cents cheaper at $2.90. Today’s national average is only one cent more expensive than a month ago, but 60 cents more expensive than a year ago.

South Dakota Average Gas Prices:

Nationwide, 44 states have less expensive or steady gas price averages compared to last Monday. However, the cheaper trend may be reversing. Gasoline demand spiked in the latest Energy Information Administration’s (EIA) report, in fact setting a new all-time record at 9.88 million b/d for the week ending June 8. As demand skyrockets, U.S. gasoline inventories plummeted 2.27 million bbl, to land total inventories at 237 million bbl, which is 5.7 million below stocks last year at this time.

“If demand continues to strengthen and inventories decrease in the weeks ahead, motorists can expect gas prices do a reversal and start to increase again,” said Buskohl, AAA spokesperson. “AAA expects the national gas price average to range between $2.85 and $3.05 through Labor Day, likely seeing the summer’s highest prices in June.”

Quick Stats

• The nation’s top 10 most expensive markets are: Hawaii ($3.73), California ($3.71), Washington ($3.45), Alaska ($3.43), Oregon ($3.32), Nevada ($3.31), Utah ($3.19), Idaho ($3.19), Connecticut ($3.11) and Arizona ($3.07).

   

• The nation’s top 10 largest weekly changes are: Ohio (-10 cents), Florida (-5 cents), Delaware (-5 cents), Indiana (+5 cents), Virginia (-5 cents), Utah (+4 cents), Maryland (-4 cents), Iowa (-4 cents), Kansas (-4 cents) and Illinois (-4 cents).

Central and Great Lakes Region

Finding cheaper gas prices at the pump continues this week for the bulk of motorists in the Great Lakes and Central states. Ohio (-10 cents) tops the chart for the biggest weekly change in gas price averages in the country. Also making an appearance on the top 10 changes list: Iowa (-4 cents), Kansas (-4 cents) and Illinois (-4 cents). However, gas prices are more expensive for three states on the week: Indiana (+5 cents), Michigan (+2 cents) and Missouri (+1 cent).

Some states in the region are paying a hefty year-over-year increase. Indiana’s gas price is 80-cents more expensive than last year – the highest of any state in the country and region. Other states at the 55-cent or more mark include Michigan (+70 cents), Illinois (+64 cents), North Dakota (+62 cents), Missouri (+61 cents), Kentucky (+59 cents), Kansas (+58 cents), Wisconsin (+58 cents), Idaho (+57 cents), Ohio (+57 cents), South Dakota (+56 cents) and Minnesota (+56 cents).

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI decreased $1.83 cents to settle at $65.06. Oil prices trended marginally higher last week because of a stronger dollar.

According to EIA’s latest weekly petroleum status report, total U.S. production jumped to around 10.9 million b/d, up about 100,000 b/d on the week.

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.

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