Holiday driving demand causes temporary increase at the pump

(December 27, 2017) Heading into the final week of the year, the national average price for a gallon of gasoline is $2.44, an increase of two cents on the week. As more drivers hit the road for the holidays, the increase in driving demand is likely the cause for increases in some states, according to statistics from AAA.

Despite the incremental jump, motorists in 33 states are paying less on the week — as much as nine cents. Today’s average is about 26 cents per gallon higher than a year ago. The cheapest gas can be found in Alabama ($2.17), while Hawaii ($3.29) sells the most expensive.

“The majority of motorists have seen savings at the pump this month. The national gas price average is over five cents cheaper than the beginning of December,” said Jeanette Casselano, AAA spokesperson.

Quick Stats

The top 10 markets with the largest weekly changes are: Michigan (+17 cents), Ohio (+15 cents), Indiana (+12 cents), Illinois (+11 cents), Kentucky (+9 cents), Alaska (-9 cents), Wisconsin (+7 cents), Missouri (+5 cents), North Dakota (-4 cents) and West Virginia (+4 cents).

The nation’s top 10 least expensive markets are: Alabama ($2.17), Texas ($2.17), Mississippi ($2.18), Arkansas ($2.18), Oklahoma ($2.19), South Carolina ($2.20), Missouri ($2.20), Louisiana ($2.22), Kansas ($2.22) and Tennessee ($2.23).



West Coast


Drivers in the West Coast region are paying some of the highest prices at the pump after the holiday weekend. The six states in the region that are most expensive are: Hawaii ($3.29), Alaska ($3.10), California ($3.08), Washington ($2.92), Oregon ($2.78) and Nevada ($2.65). As prices continue to drop on the week, Alaska saw the largest decline (-9), while Washington, Oregon and Nevada each dropped a penny and Hawaii and California saw no change.

According to the Energy Information Administration’s (EIA) latest report for the region, gasoline inventories hit a new milestone: a 10-month high at 31 million bbl. The figure is 2.6 million bbl above the inventory level at this time last year.

Great Lakes and Central

Across the Great Lakes and Central regions, gas prices are as cheap as $2.20 in Missouri and as expensive as $2.60 in Michigan. On the week, gas prices continue to decrease for the majority of states in the Central Region with North Dakota (-4 cents), Kansas (-2 cents) and South Dakota (-2 cents) seeing the largest drops at the pump.

Conversely, motorists in Michigan (+17 cents), Ohio (+15 cents), Indiana (+12 cents), Illinois (+11 cents), Kentucky (+9 cents), Wisconsin (+7 cents) and Missouri (+5 cents) saw some of the highest weekly increases. Throughout the year, these regions have been some of the most volatile – seeing prices take large jumps and declines from week to week.

Gasoline inventories had a small decline of 26,000 barrels. At 47.8 million barrels, inventories are at a 3.3 million barrel deficit compared to this time last year.

South and Southeast

On the week, Florida saw the largest decrease (-2 cents) in the region. Alabama ($2.17) takes the Nation’s top spot for the cheapest gas price average. Six states in the region join Alabama on this week’s top 10 list of states with the least expensive gas price averages: Texas ($2.17), Mississippi ($2.18), Arkansas ($2.18), Oklahoma ($2.20), South Carolina ($2.20) and Louisiana ($2.22).

While gas prices are more expensive nationally compared to last year, Florida motorists are only seeing a three-cent difference, which is the smallest year-over-year difference in the region and the country.

With an addition of 2.4 million bbl, gasoline inventories grew for a third straight week. At 84 million bbl in total, this is the largest total inventory in the region since late January.

Mid-Atlantic and Northeast

Gas prices range from a low of $2.23 in Tennessee to high of $2.69 in Pennsylvania and Washington, D.C. With a 12 cent price difference, Delaware saw the largest monthly decline in gas prices in the region.

According to the latest EIA report, gasoline inventories in the region increased by 1.2 million bbl on the week despite an increase in driving demand.