The Week

After several weeks of declines, local drivers saw an uptick at the gas pump this week. Rising crude oil prices and a slight dip in local gasoline supply numbers are contributing to the increase. Crude prices are being pushed higher by China’s efforts to curb economic damage brought on by the effects of the coronavirus and optimism that the Organization of the Petroleum Exporting Countries (OPEC) and its allies will increase production cuts next month. AAA warns that drivers could see more fluctuation at the pump in the near future.

Today’s national gas price average is $2.46, up three cents in the last week, down eight cents in the last month and up nine cents from this time last year.

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $53.38 per barrel, $1.33 higher than last Friday’s close. Crude prices increased during the week as data showed a smaller than expected weekly inventory build and the market reacted to a move by China’s central bank aimed at boosting that country’s economy and softening the blow brought on by the coronavirus. Prices were also supported by optimism that OPEC and its allies could increase production cuts next month.

The Weekend

“Domestic wholesale gasoline and global crude oil prices increased this week causing gas prices to fluctuate,” says John B. Townsend II, manager of Public and Government Affairs for AAA Mid-Atlantic. “Pump prices in the week ahead could see further volatility depending on movement of the oil market as well as U.S. gasoline demand and stock levels numbers.”

The Week Ahead

Drivers may see prices at the pump start to climb in the next few weeks as refinery maintenance season continues. In the months following maintenance season, gasoline refiners and retailers will switchover to summer-blend gasoline. Summer-blend gasoline has a lower RVP (Reid vapor pressure), a measure for gasoline volatility, to prevent excessive evaporation when outside temperatures rise. Reducing the volatility of summer gas decreases emissions that can contribute to unhealthy ozone and smog levels. A lower RVP also helps prevent drivability problems such as vapor lock on hot days, especially in older vehicles. Summer-blend gasoline, mandated for refiners beginning May 1 to September 15 and for retailers June 1 to September, is more expensive to produce, and that cost is passed on to the motorist.

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

• Shell Fuel Rewards Program for AAA Members: (https://www.AAA.com/Shell) gives AAA members nationwide a discount on gasoline at Shell stations when they join the Fuel Rewards® program.
• Fuel Price Finder (https://www.AAA.com/fuelfinder) locates the lowest fuel price in your area. 
• AAA Gas Cost Calculator (https://gasprices.aaa.com/aaa-gas-cost-calculator/) helps budget travel expenses. 
• TripTik Mobile (https://www.aaa.com/mobile) plots fuel prices along your travel route. 
• AAA's Member Rewards Visa® Credit Card (https://www.AAA.com/financial/AAAvisa.htm) accumulates double points on fuel purchases.          

AAA is the most comprehensive resource for gas prices.  Unlike the Lundberg Survey of 7,000 gas stations, AAA reports reflect actual prices from credit card transactions at more than 100,000 gas stations in the U.S.

Next Weekend Gas Watch: Friday, February 28, 2020

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AAA provides automotive, travel and insurance services to 60 million members nationwide and nearly 82,000 members in the District of Columbia.  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  https://aaa.com