At $2.49, the national gas price average is the most expensive seen at the start of a new year since 2014, when gas prices were more than $3/gallon. High travel volumes over the holidays drove gas prices up five cents on the week. At the start of 2018, motorists in the Northeast, South and the upper Midwest are seeing pump prices as much as 13 cents more expensive than last one week ago.
“Although prices at the pump shot up over the holidays, now that the holiday season in the rearview mirror, motorists can expect gas prices to trend cheaper this month as we are likely to see a significant drop in gasoline demand,” said Jeanette Casselano, AAA spokesperson.
The latest Energy Information Administration (EIA) report measures gasoline demand at a strong 9.5 million b/d, which is typical of the holiday season. However, historical data shows that in early January demand typical drops and stays below the 9 million mark for the first few months of the year.
- The nation’s top ten states with the largest yearly changes are: Alaska (+39 cents), Montana (+35 cents), California (+34 cents), Oregon (+30 cents), Hawaii (+27 cents), Washington (+24 cents), Wyoming (+24 cents), Indiana (+23 cents), Nevada (+22 cents) and Utah (+22 cents).
- The nation’s top ten states with the least expensive gasoline are: Missouri ($2.22), Oklahoma ($2.22), Alabama ($2.22), Arkansas ($2.23), Mississippi ($2.23), South Carolina ($2.24), Texas ($2.24), Louisiana ($2.26), Tennessee ($2.26) and Kansas ($2.28).
Gas prices in the South and Southeast remain among the cheapest in the country even with pump prices jumping in every state on the week except New Mexico (-1 cent). Motorists in Florida (+9 cents), Georgia (+8 cents), Texas (+7 cents), Mississippi (+6 cents), Alabama (+5 cents) and Arkansas (+5 cents) are seeing the biggest price increases in the region since Christmas Day.
Gasoline inventories had a 278,000 bbl. build on the week, bringing levels above the 84 million bbl. mark. This is one of the highest inventory measurements of 2017 for the region.