AAA: Kentucky Gas Prices Increase; Nationwide Demand Decreases

Gas prices in West Central Kentucky are five cents higher this week at $2.696, according to AAA East Central’s Gas Price Report.

This week’s average prices: Western Central KY Average                       $2.696
Average price during the week of April 26, 2021                                        $2.642
Average price during the week of May 4, 2020                                           $1.434
Average prices of unleaded self-serve gasoline in various areas: 

$2.665        Bowling Green
$2.587        Elizabethtown
$2.920        Louisville
$2.627        Owensboro
$2.681        Paducah

Trend Analysis:

At the start of May, the national gas price average is $2.90, which is three cents more than a month ago. Pump prices in April saw minimal movement compared to March, which increased 15 cents from start to finish. Stable crude oil prices amid fluctuating demand helped keep the national average price jumps nominal last month.

While April saw slight fluctuations, May is likely to see much larger increases alongside demand spikes, especially closer to Memorial Day weekend. Compared to May 2019, U.S. gasoline demand is down only 4% and gas prices are on average just two cents more.

On the week, the national average increased two cents. Ten states saw averages increase between five and eight cents, but the majority of states saw increases of one to three cents. The pump price changes come amid a flux in supply and demand. For the week ending April 23, the Energy Information Administration reported gasoline stocks saw a small 100,000 barrel build to reach the 135 million barrel mark. That is the highest supply rate since the end of February and an 8.3 million barrel surplus compared to the same time two years ago. While supply increased, demand saw a decrease of 3% to 8.87 million barrels per day.

At the close of Friday’s formal trading session, WTI decreased by $1.43 to settle at $63.58. Although prices ended the day with a decrease, supported by a strong dollar, the price of crude increased by nearly $1.50 per barrel on the week. Increased market optimism that crude demand will recover, despite surging coronavirus infection rates in Asia, helped to lift prices. Prices could continue to climb this week if the market remains optimistic.

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