After a period of relative stability, the national average for a gallon of gasoline has climbed by 4 cents over the past week, reaching $3.12, according to AAA. The price increase comes despite crude oil prices remaining below $70 per barrel and is largely attributed to the seasonal transition to summer-blend gasoline, which is more expensive to produce due to its reduced volatility in warm temperatures.
The national average for public electric vehicle (EV) charging remained unchanged at 34 cents per kilowatt hour.
Supply and Demand Factors
New data from the Energy Information Administration (EIA) shows a decline in gasoline demand, which dropped from 9.18 million barrels per day to 8.81 million. At the same time, total domestic gasoline supply decreased slightly from 241.1 million barrels to 240.6 million. Despite the lower demand and reduced supply, gasoline production increased, averaging 9.6 million barrels per day over the past week.
Today’s national average for gasoline remains 4 cents lower than one month ago and roughly 40 cents lower than the same time last year.
Oil Market Overview
On Wednesday, West Texas Intermediate (WTI) crude oil rose 26 cents during the formal trading session to settle at $67.16 per barrel. The EIA reported that U.S. crude oil inventories rose by 1.7 million barrels from the previous week. At 437.0 million barrels, the current inventory level is about 5% below the five-year average for this time of year.
Gas Price Extremes Across the Nation
California tops the list of the most expensive gasoline markets, with an average price of $4.64 per gallon. It is followed by Hawaii ($4.53), Washington ($4.09), Nevada ($3.74), Oregon ($3.73), Alaska ($3.39), Illinois ($3.38), Arizona ($3.34), Idaho ($3.26), and Pennsylvania ($3.22).
On the other end of the spectrum, the least expensive states for gasoline are Mississippi ($2.66), Oklahoma ($2.69), Kentucky ($2.69), Tennessee ($2.69), Louisiana ($2.73), Alabama ($2.74), Texas ($2.76), Arkansas ($2.76), South Carolina ($2.78), and Kansas ($2.80).
EV Charging Cost Breakdown
While gasoline prices have seen an uptick, the cost of public EV charging has remained steady. The highest average cost per kilowatt hour is found in Hawaii at 56 cents. Other states with elevated charging rates include West Virginia (46 cents), Montana (45 cents), South Carolina (42 cents), Tennessee (42 cents), Idaho (42 cents), Alaska (41 cents), Kentucky (40 cents), New Hampshire (40 cents), and Louisiana (39 cents).
The least expensive states for public charging include Kansas (22 cents), Missouri (25 cents), Nebraska (26 cents), Iowa (26 cents), North Dakota (26 cents), Delaware (27 cents), Michigan (29 cents), Texas (29 cents), Utah (29 cents), and Washington, DC (30 cents).
As refineries continue to shift production to summer-grade gasoline, AAA notes that further price increases at the pump may follow in the coming weeks, even in the absence of significant changes in crude oil prices.
Image: AAA
This article, “Gas Prices Tick Upward Amid Seasonal Shift to Summer Fuel, AAA Reports” was first published on Small Business Trends