Just in time for holiday RV travel, the national average for gas prices shook off nearly three weeks of stagnation, moving a nickel higher since last week to hit $3.50.
In AAA’s most recent gas price report (June 27), the outfit noted the cost of oil crossed the $80 per barrel mark, putting upward pressure on pump prices. With oil costs accounting for about 54% of what you pay at the pump, more expensive oil usually leads to more expensive gas. Yes, gas prices will fly for the 4th of July.
With 60 million traveling on the road, gas prices will fly for the 4th of July
“Summer got off to a slow start last week with low gas demand,” said Andrew Gross, AAA spokesperson. “But with a record 60 million travelers forecast to hit the road for the July 4th holiday, that number could pop over the next ten days. But will oil stay above $80 a barrel, or will it sag again? Stay tuned.”
Adding to the increase due to the oil market, several states upped their fuel taxes and fees on July 1. Indiana increased the tax on gasoline/gasohol by a cent to 35 cents a gallon. Virginia stayed in the race, increasing the tax on gasoline, gasohol, and alternative fuels such as CNG and LNG by a penny to 30.8 cents a gallon.
Breaking with increases, Michigan kept the current gas tax rate at 18.8 cents per gallon, while reducing the clear diesel fuel and kerosene tax from 21.3 to 20.4 cents per gallon
High supply may cushion the blow
According to new data from the Energy Information Administration (EIA), gas demand fell from 9.38 million barrels per day to 8.96 last week. This demand level is about 240,000 barrels per day below the same week of last year.
Meanwhile, total domestic gasoline stocks rose from 231.2 to 233.9 million barrels. Low gasoline demand and increasing supply may help counter higher oil costs, slowing any rise in pump prices.
On June 27, the national average was $3.50, nine cents less than a month ago and six cents less than a year ago. Gas prices will fly for the 4th of July, so we project you’ll see higher prices than these.
Quick stats
The nation’s top 10 most expensive markets are California ($4.80), Hawaii ($4.71), Washington ($4.21), Oregon ($4.07), Nevada ($4.04), Alaska ($3.90), Illinois ($3.88), Michigan ($3.70), Washington, D.C. ($3.66), and Indiana ($3.65).
The nation’s top 10 least expensive markets are Mississippi ($2.91), Louisiana ($3.01), Arkansas ($3.01), Oklahoma ($3.08), Alabama ($3.09), Texas ($3.10), Kansas ($3.10), Tennessee ($3.12), Missouri ($3.12), and South Carolina ($3.21).
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I realize it’s only the 1st, but our gas prices actually went down 3¢ yesterday.
Thank you, Russ and Tina! 🙂 I was out and about this morning, but failed to note what gasoline prices here in East Tennessee are 🙁 Thanks again, have a great week, safe travels, and safe stays! 🙂
California’s gas taxes automatically went up .02 a gallon today. Gas taxes highest in the nation.
Biggest lie ever told by any corporation…” we do not manipulate gas and oil prices”…if noses were as long Pinocchio on these clowns…they would need a brace to hold them up.