(September 1, 2020) The national gas price average spiked by a nickel on the week to $2.23, but is expected to push cheaper in the week ahead. Pump prices jumped as a result of Hurricane Laura and an increase in demand for one of the highest measurements of the year, according to weekly statistics by AAA.

“It’s typical to see increased demand and more expensive gas prices ahead of a storm, especially one that threatens rigs and refineries in the Gulf of Mexico region,” said AAA's Jeanette Casselano.

“The latest industry reports indicate that facilities in Texas have already begun the restarting process, which means there is no major threat to gasoline stocks and gas prices should push cheaper.”

However, operations in the Lake Charles, La., region are still down and could be for some time. This includes the Lake Charles CITGO (440,000 barrels a day) and Phillip66 (239,400 barrels a day) facilities. In the Gulf of Mexico, the Bureau of Safety and Environmental Enforcement (BSEE) reports that 70% of current oil production is still shuttered, which is still significant but better when compared to 84% reported when the storm hit.

The second factor pushing prices more expensive in the last week was the Energy Information Administration (EIA) report that gas demand increased from 8.63 million b/d to 9.16 million barrels a day. While higher than we’ve seen throughout the summer, this estimated rate is 739,000 b/d lower than the rate last year at this time. Moreover, total domestic gasoline supplies decreased by 4.6 million barrels last week to 239.2 million barrels, but the current level is 7.2 million barrels higher than the level at this time last year.

Today’s national average is a nickel more than last month, but 35 cents cheaper than a year ago. On the week, all but five states saw state gas price averages increase. Of those that saw jumps, nearly 20 state averages are 5 to 15 cents more expensive.

Quick Stats

    •     The nation’s top 10 largest weekly increases: West Virginia (+14 cents), Ohio (+13 cents), Indiana (+10 cents), North Carolina (+9 cents), Pennsylvania (+9 cents), Delaware (+9 cents), Virginia (+9 cents), Minnesota (+8 cents), South Carolina (+8 cents) and Tennessee (+8 cents).

    •    The nation’s top 10 least expensive markets: Mississippi ($1.88), Louisiana ($1.89), Texas ($1.90), Arkansas ($1.92), Oklahoma ($1.92), Alabama ($1.93), Missouri ($1.94), Tennessee ($1.99), South Carolina ($2.00) and Kansas ($2.00).