TOWSON, MD (October 22, 2018) – The national gas price average is $2.85 per gallon. That is six cents cheaper than this month’s highest price of $2.91, which was the most expensive average during the month of October since 2014. Today’s national price is also four cents cheaper than last week, the same price as last month and 39- cent more than this time last year.

Reduced refinery runs, due to peak maintenance season, have contributed to stable gasoline inventories amid lower demand, which is a contributing factor driving gas prices down.

“After rising for nearly the first half of October, the majority of motorists across the country are seeing gas prices declining for the second half of the month as 41 states, including Maryland, are now reporting less expensive averages on the week,” said Ragina Cooper Averella, Manager of Public and Government Affairs at AAA Mid-Atlantic. “Prices are falling despite market concerns about global supply and geopolitical tensions, but that could change later this month ahead of the U.S. announcement of imposed sanctions on Iran.”

Mid-Atlantic and Northeast Gasoline Prices and Supplies

On the week, pump prices are as much as a dime cheaper across Mid-Atlantic and Northeast states. Delaware (-10 cents) and Maryland (-7 cents) saw the largest declines of all states in the region, landing on the top 10 list of states with the largest weekly change.

Maryland’s average price is 11 cents lower than the national average at $2.74 per gallon and down 11 cents from the state’s October high of $2.85.  The state average is seven cents lower than last week, ranking the state seventh in the nation with the largest weekly decline. Maryland’s average also dropped by seven cents compared to last month’s price, but is 36 cents more than last year’s cost on this date.  

With a draw of 602,000 barrels, gasoline inventories in the region register right at the 70 million barrel mark, according to the latest Energy Information Administration (EIA) data. The region is sitting on a 12.1 million barrel year-over-year surplus underscoring the nation’s high gasoline production rates this 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) increased 47 cents to settle at $69.12 per barrel. The crude market mostly saw losses last week following EIA’s latest weekly petroleum report, which showed domestic crude inventories grew by 6.5 million barrels.

Total crude inventories now sit at 416.4 million barrels, marking the fourth week of consecutive growth and highest level since late June. The larger-than-expected growth in crude levels shocked the market, leading crude prices to fall. This week, prices could rise again due to concerns about U.S.-Saudi Arabia relations and upcoming U.S.-imposed sanctions on Iran’s crude exports.

In related news, Baker Hughes, Inc. reported that the U.S. gained four oil rigs last week, bringing the total to 873. When compared to last year at this time, there are 137 more rigs now than in 2017.

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:
8600 LaSalle Road, Ste 639
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.