According to AAA reports from Monday afternoon, the national average for gasoline has crested $5 a gallon.
It’s a price point never seen by AAA officials, since the organization began collecting price data in 2000.
Trend analysis indicates that the current cost for a barrel of oil is hovering near $120, which is nearly double the prices observed in August 2021. Increased oil demand greatly outpaces a tight global supply, and domestic gasoline demands remain robust as summer driving season remains full bore.
Because of this, and a “perfect storm” of factors, the national average for a gallon of gas has surged just in the last seven days. It’s 15 cents higher than a week ago, 58 cents higher than a month ago, and $1.94 higher than a year ago.
While gas prices in west central Kentucky remain lower than the national average, it isn’t by much. The averaged raised nine cents in the last week, to $4.74.
During the week of June 6, prices hovered around $4.65 a gallon, while the average price during the week of June 14, 2021 was $2.83.
That’s a 64% price increase in one year’s time, with little reprieve on the horizon.
The average prices for self-serve, unleaded gasoline in Paducah are at $4.55, $4.67 in Owensboro, $4.73 in Elizabethtown and $4.77 in Bowling Green, while Louisville is approaching the $5 mark.
AAA warns that the dynamic between decreased supply and increased demand will continue to contribute to rising petrol prices. Add that to the increasing prices of crude oil, and the price of gasoline will almost certainly remain elevated in the shorter financial forecast.
Crude prices have increased despite the Energy Information Administration’s report that total domestic stocks have improved by 2.1 million barrels last week, to 416.8 million. However, the current storage level is reportedly 12% lower than last year, which also increases prices.
Motorists seeking gasoline data for counties, states and the U.S. can visit online at gasprices.aaa.com.
