AAA: Gas Prices Higher in Western Kentucky as Crude Oil Prices Climb

Gas prices in West Central Kentucky are three cents higher this week at $2.878, according to AAA East Central’s Gas Price Report.

This week’s average prices: Western Central KY Average                       $2.878
Average price during the week of June 1, 2021                                         $2.846
Average price during the week of June 8, 2020                                         $1.927

Average prices of unleaded self-serve gasoline in various areas: 

$2.786        Bowling Green
$2.789        Elizabethtown
$3.155        Louisville
$2.797        Owensboro
$2.865        Paducah

Trend Analysis:

After ten days of stability, the national gas price average increased a penny over the weekend to $3.05. On the week, the majority of states’ (26) gas price averages either increased by one cent or saw no movement. Only two states saw prices increase a nickel or more. Prices are poised to fluctuate in the coming week, especially in light of a recent drop in demand. The Energy Information Administration (EIA) reported demand decreased from 9.48 million barrels a day to 9.15 million barrels a day for the week ending May 28. During the same week, total gasoline stocks increased to nearly 234 million barrels as U.S. refinery utilization jumped to 88.7%—the highest rate since February 2020.

This week’s demand number is expected to be higher as it will reflect Memorial Day holiday weekend travel, but it’s not likely to lead to an increase in gas prices for the majority of motorists. However, crude oil is on the rise and could prop up pump prices.

Last week, crude prices increased to their highest price point ($69/barrel) in 2.5 years. Since crude accounts for more than 50% of the price at the pump, when it goes up, so does the price motorists pay. What is promising is that crude may not sustain at this level. The Organization of the Petroleum Exporting Countries (OPEC), and its allies including Russia, announced last week it still plans to gradually increase crude production in July. If it does increase production, this could lead to a decrease in crude oil prices.