After increasing by 12 cents last week, gas prices in West Central Kentucky are another eight cents higher this week at $2.525, according to AAA East Central’s Gas Price Report.
This week’s average prices: Western Central KY Average $2.525
Average price during the week of February 22, 2021 $2.447
Average price during the week of March 3, 2020 $2.243
Average prices of unleaded self-serve gasoline in various areas:
$2.492 Bowling Green
$2.466 Elizabethtown
$2.765 Louisville
$2.414 Owensboro
$2.488 Paducah
Trend Analysis:
Gas prices continue to increase, with the national average up nine cents on the week to $2.72. That is a 30 cent increase from the beginning of February, 28 cents more than a year ago and the most expensive daily national average since August 2019.
The latest price jumps are a direct result of February’s winter storm that took 26 U.S. refineries offline and pushed refinery utilization from an average of about 83% down to an atypical low of 68%, according to the Energy Information Administration (EIA). In its latest data, EIA also reported demand at 7.2 million barrels per day. Both utilization and demand rates have not been reported this low since last May.
AAA forecasts the national gas price average to increase in March. However, if refineries resume normal operations, and if crude oil prices show signs of stability, motorists may see some relief at the pump towards the end of the month.
At the close of Friday’s formal trading session, West Texas Intermediate decreased by $2.03 to settle at $61.50. Crude prices rose mid-week despite the EIA’s latest report revealing that total domestic crude inventories increased by 1.3 million barrels last week, bringing the supply level to 463 million barrels. For this week, crude prices could rise if the EIA’s next weekly report shows a decrease in total stocks.