WASHINGTON and BOSTON -- Despite gasoline demand hitting a record for March, average retail prices are still near a record low.
The national average at the start of this week was $2.14 per gallon, which is 39 cents per gallon (CPG) lower than this time last year, and the lowest price for this date since 2009, according to AAA, Washington, D.C.
Only two states had averages above $2.50—California at $2.77 per gallon and Hawaii at $2.58, possibly pressured upward by a week-over-week drop in gasoline production for the region. The next three highest averages were in Nevada ($2.45), Washington ($2.34) and Pennsylvania ($2.32). The lowest averages were in Texas at $1.90 per gallon and Mississippi at $1.91.
Prices rose in 44 states and Washington, D.C., week over week. Ten states had a jump of 5 CPG or more. The biggest increases were in Indiana and West Virginia, both up 9 CPG, and Utah (8 CPG). Averages dropped in six states, with Minnesota leading at a 4-CPG decline, followed by Hawaii (3 CPG).
On a month-over-month basis, averages rose in 49 states. Prices leapt by double digits in 23 states and Washington, D.C. The biggest increases: Utah at 32 CPG, Indiana (23 CPG) and Ohio (22 CPGs).
Year over year, all 50 states and Washington, D.C., saw averages down at least 25 CPG. The biggest declines were in Alaska (72 CPG), Oregon (56 CPG), California (55 CPG) and Hawaii (51 CPG).
According to Boston-based GasBuddy, 37.6% of gas stations have prices of less than $2 per gallon. Compare this to a year ago, when 100% of stations were above this price point. For the highest 5% of fueling sites, prices averaged about $2.90 per gallon at the start of this week, and $1.78 per gallon at the lowest 5% of stations. This difference of $1.12 per gallon is smaller than the $1.29 gap between the highest and lowest 5% at this same time last year.
Will Speer, senior petroleum analyst at GasBuddy, noted that prices remain relatively low despite a jump in fuel demand.
“Leading the demand surge has been gasoline, where the Energy Information Administration shows year-to-date demand to be up 3.4% from last year and up 7.4% from 2014 according to their ‘product supplied’ demand indicator,” said Speer.
“Consequently, we see the benchmark West Texas Intermediate crude opening the week at [more than] $43, $8 higher than where we were just three weeks ago,” Speer said; however, the most common gas price nationwide was $1.99 per gallon—the same price as a week, month and six months ago.
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