AAA: Gas Prices Skyrocket

Gas prices in West Central Kentucky are 36 cents higher this week at $4.657, according to AAA East Central’s Gas Price Report.

This week’s average prices: Western Central KY Average                $4.657
Average price during the week of May 31, 2022                                  $4.290
Average price during the week of June 7, 2021                                   $2.878 

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

$4.607        Bowling Green
$4.511        Elizabethtown
$4.993        Louisville
$4.582        Owensboro
$4.592        Paducah

Trend Analysis:

The cost of gasoline is increasing rapidly across the country in part due to seasonal trends and the rising cost of crude oil. The cost of a barrel of oil is nearing $120, nearly double from last August, as increased oil demand outpaces the tight global supply. Meanwhile, domestic gasoline demand rose last week in the wake of a robust Memorial Day weekend of travel. As a result, the national average for a gallon of gas surged 25 cents in one week to hit $4.86. Today’s national average is 59 cents more than a month ago, and $1.81 more than a year ago.

According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 700,000 barrels to 219 million barrels last week. Meanwhile, gasoline demand grew from 8.8 million b/d to 8.98 million b/d as drivers fueled up for Memorial Day weekend travel. These supply and demand dynamics have contributed to rising pump prices. Coupled with volatile crude oil prices, pump prices will likely remain elevated as long as demand grows and supply remains tight.

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