Gas prices in West Central Kentucky are nine cents higher this week at $2.882, according to AAA East Central’s Gas Price Report.
This week’s average prices: Western Central KY Average $2.882
Average price during the week of June 28, 2021 $2.794
Average price during the week of July 6, 2020 $2.000
Average prices of unleaded self-serve gasoline in various areas:
$2.877 Bowling Green
$2.899 Elizabethtown
$3.119 Louisville
$2.742 Owensboro
$2.775 Paducah
Trend Analysis:
The national gas price average has increased 40% since the start of the year, from $2.25 on January 1 to $3.13 today. Motorists could see gas prices increase another 10–20 cents through the end of August, bringing the national average well over $3.25 this summer.
Robust gasoline demand and more expensive crude oil prices are pushing gas prices higher. Global crude production increases could have brought some relief at the pump this month, but weekend OPEC negotiations fell through with no agreement reached. As a result, crude prices are set to surge to a seven year-high.
The latest weekly report from the Energy Information Administration shows that gasoline demand remains robust at 9.1 million barrels per day, despite a weekly decrease. EIA reports that gasoline stocks increased by 1.5 million barrels to 241 million barrels last week. Since last Monday, the national average increased four cents and is more expensive on the month (+8 cents) and the year (+95 cents).
As the market watches crude prices increase this week, the U.S. will be watching Tropical Storm Elsa. While the storm is weakening and will avoid interruptions to Gulf Coast crude and gasoline production, it is expected to bring storm surge and possible flooding to parts of Florida, Georgia and South Carolina.