TOWSON, MD (October 29, 2018) – The national gas price average has been dropping slowly and steadily for the past 16 days. At $2.82 per gallon, today’s national average is three cents less than last week, six cents cheaper than last month but 35 cents more expensive than this time last year.

“Just like the outside temperature, motorists are seeing gas prices cool off. The last few weeks saw peak refinery maintenance season start to wrap-up and push less expensive gas prices, but the lower prices are not likely to be a long-term trend,” said Christine Sarames Delise, a AAA Mid-Atlantic spokesperson. “AAA expects that gas prices will likely start to increase as early as later this week ahead of the November 4 Iran sanctions announcement and the mid-term elections.”

How expensive gas prices will be depends on how the market reacts to the early November events. However, motorists are not likely to pay summer prices this winter.

Mid-Atlantic and Northeast Gasoline Prices and Supplies

On the week, Maryland (-6 cents) and Virginia (-5 cents) were among the four states in the Mid-Atlantic and Northeast region that saw the largest declines in gas price averages. Since last week, Delaware continues to carry the cheapest gas in the region and country at $2.52 per gallon.

At $2.68 per gallon, Maryland’s average price is the lowest since Mid-April. The state average reflects a six cents drop from last week, a 12 cents decline from last month but a 26 cents increase from last year’s price on this date. Metro areas across the state experienced weekly declines ranging from four to six cents per gallon.

The region saw the largest draw in gasoline stocks of any region with a 2.3 million barrel drop. Some of the draw can be attributed to exports. Despite the decline, levels are relatively strong at 67 million barrels total. In fact, that is a nearly 11 million barrel surplus year-over-year.

CURRENT AND PAST GAS PRICE AVERAGES 

Regular Unleaded Gasoline

Oil Market Dynamics

At the close of Friday’s formal trading session on the NYMEX, West Texas Intermediate (WTI) crude oil increased 26 cents from the previous day’s close to settle at $67.59 per barrel. Crude prices ended last week with mostly losses, following release of the Energy Information Administration’s (EIA) weekly petroleum report that showed crude inventories increased for the fifth consecutive week.

Domestic crude inventories gained 6.3 million barrels to total 422.8 million barrels – a level not seen since the beginning of the driving season in June, according to EIA’s latest data. If this week’s EIA report shows another substantial build in total crude inventories, prices are likely to face more downward pressure. However, the potential price decline is likely to be short-lived, as U.S-imposed sanctions on Iran’s crude exports will take effect on Sunday, which may heighten fears in the market about reduced global supply amid growing global crude demand.

AAA has a variety of resources to help motorists save on fuel: 

• Fuel Price Finder (AAA.com/fuelfinder) locates the lowest fuel price in your area. 

• AAA Gas Cost Calculator (GasPrices.AAA.com/AAA-gas-cost-calculator/) helps budget travel expenses. 

• TripTik Mobile (AAA.com/mobile) plots fuel prices along your travel route. 

• AAA's Member Rewards Visa® Credit Card (AAA.com/financial/AAAvisa.htm) accumulates double points on fuel purchases.

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Mailing Address:
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Towson, MD 21286

AAA provides automotive, travel and insurance services to 57 million members nationwide and more than 975,000 members in Maryland.  AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years.  The not-for-profit, fully tax-paying member organization works on behalf of motorists, who can now map a route, find local gas prices, discover discounts, book a hotel and track their roadside assistance service with the AAA Mobile app for iPhone, iPad and Android.  For more information, visit AAA.com.