AAA reports that, since Monday, the national average for a gallon of regular gasoline increased by ten cents to $4.58. Alaska’s statewide average for gasoline is currently at $5.17, with fears it could increase ahead of the holiday weekend next week. According to new data from the Energy Information Administration, total domestic gasoline stocks decreased by 4.8 million billion barrels of petroleum liquids (BBL) to 220.2 (BBL) last week.
At the same time, demand for gasoline increased from 8.7 million barrels per day to 9 million barrels per day. Tighter supply and increased demand have pushed pump prices higher. AAA says that the supply/demand dynamic, combined with volatile crude prices, will likely continue to keep upward pressure on prices at the pump.
Every single state in the nation is seeing an average gasoline price above $4 a gallon. According to ABC News, new research now says that American families are spending $5,000 a year on gas. A year ago, it was $2,800, just in March it was $3,800.
JP Morgan, also according to ABC News, issued a warning saying that before the end of summer, the national average could hit $6 a gallon or more. JP Morgan believes that could be nationwide.
At the close of Wednesday’s formal trading session, West Texas Intermediate decreased by $2.81 to settle at $109.59. Crude prices recently dropped as market concerns about the likelihood of a recession increased. AAA says if that occurs, crude demand likely would decrease amid decreased economic activity and cause crude prices to decline.
Since last Thursday, Alaska led the nation in the largest increase in average weekly gasoline prices at 34 cents.