AAA: Gas Prices Lower in Western Kentucky; National Average on the Rise

Gas prices in West Central Kentucky are three cents lower this week at $2.794, according to AAA East Central’s Gas Price Report.

This week’s average prices: Western Central KY Average                       $2.794
Average price during the week of June 21, 2021                                       $2.822
Average price during the week of June 29, 2020                                       $2.045
 
Average prices of unleaded self-serve gasoline in various areas: 

$2.806        Bowling Green
$2.718        Elizabethtown
$3.032        Louisville
$2.720        Owensboro
$2.695        Paducah

Trend Analysis:

At $3.09, the national gas price average is at its highest of the year and could increase, possibly as much as another nickel, in the lead up to the Independence Day holiday weekend. While it is typical to see gas prices increase ahead of a holiday, especially during the peak summer driving season, pump price increases as of late have been noticeable.

Today, 89% of U.S. gas stations are selling regular unleaded for $2.75 or more. That is a stark increase over last July 4 when only a quarter of stations were selling gas for more than $2.25. Road trippers will pay the most to fill up for the holiday since 2014.

Independence Day Holiday Weekend	Gas Price Average
July 2 – 6, 2014	$3.66
July 1 – 5, 2015	$2.76
June 30 – July 4, 2016	$2.27
June 30 – July 4, 2017	$2.23
July 3 – 8, 2018	$2.86
July 3 – 7, 2019	$2.75
July 1 – 5, 2020	$2.17
June 28, 2021	$3.09

Crude oil, and in turn gas prices, are more expensive compared to years past mostly due to three major factors: confidence in worldwide vaccination rollout, global oil demand spikes, and the easing of travel restrictions leading to optimism for leisure travel. Last week, crude oil sold at $74 per barrel, the highest price in nearly three years. 

Today’s national average is more expensive on the week (+2 cents), the month (+5 cents) and the year (+92 cents). The latest weekly increase follows the latest data from the Energy Information Administration, which showed that gas demand increased from 9.36 million barrels per day to 9.44 million barrels per day, while total domestic gas stocks decreased by 3 million barrels to 240 million barrels.