Persistent unrest between Russia and Ukraine continues to have a rippling effect on the oil market, which in turn is driving up the price of gasoline in the U.S.
The national average for a gallon of gas has risen to $3.53, four cents more than a week ago. The U.S. and its European allies have already announced the first tranche of Russia sanctions, with more severe financial sanctions promised if Russian aggression continues.
At some point, Russia could retaliate by withholding oil from the global market. That market has been tight, struggling to keep up with growing demand as economies worldwide move on from COVID-related slowdowns. Oil and gas prices have already risen over fears that the Ukraine-Russia crisis could disrupt supplies across the globe.
“Russia is one of the leading oil producers globally, trailing only the United States and Saudi Arabia,” said Lori Weaver Hawkins, public affairs manager, AAA Blue Grass. “And if they choose to withhold their oil from the global market, such a move will be reflected in higher gas prices for American motorists.”
(Photo from Wikimedia Commons)
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 1.3 million barrels to 247.1 million barrels last week. On the other hand, gasoline demand fell from 9.13 million barrels per day to 8.57 million barrels per day. Typically, a decrease in gas demand during the winter would put downward pressure on pump prices, but elevated crude prices continue to push pump prices higher.
Today’s national average for a gallon of gas is $3.53, which is 21 cents more than a month ago and 90 cents more than a year ago. Kentucky’s gas price average is now at $3.23, soaring 25 cents in the past month and 78 cents more than a year ago.
Checking nearby, the average price for a gallon of unleaded in Ohio is at $3.33, West Virginia $3.32, Virginia $3.40, Tennessee $3.30, Indiana $3.36, Illinois $3.39 and Missouri $3.18.
Top 10 largest weekly increases: Ohio (+10 cents), Maryland (+8 cents), North Carolina (+7 cents), Minnesota (+6 cents), Nevada (+5 cents), Louisiana (+5 cents), New Hampshire (+5 cents), Arizona (+5 cents), New York (+5 cents) and Hawaii (+5 cents).
Top 10 most expensive markets: California ($4.74), Hawaii ($4.51), Oregon ($3.98), Washington ($3.98), Nevada ($3.95), Alaska ($3.85), New York ($3.75), Pennsylvania ($3.73), Washington, D.C. ($3.72) and Arizona ($3.71).
At the close of Friday’s formal trading session, West Texas Intermediate increased by $3.22 to settle at $93.10. The tension between Russia and Ukraine continues to contribute to rising oil prices. Russia is a member of OPEC+, and any sanctions based on their actions toward Ukraine may cause it to withhold crude oil from the global market. Additionally, EIA reported that total domestic crude stocks decreased by 4.7 million bbl to 410.4 million bbl. The current stock level is approximately 13 percent lower than at the beginning of February 2021, contributing to pressure on domestic crude prices. If tension between Russia and Ukraine continues this week or EIA’s next report shows another inventory decline, crude prices could continue to rise.
Tips for saving money on gas:
Get your vehicle checked out: Perform regular car maintenance at the intervals recommended by the vehicle manufacturer in the owner’s manual or as indicated by the in-car maintenance reminder system. Did you delay regular maintenance during the pandemic because you were driving less? Now is the time to get caught up.
Keep tires properly inflated: Under-inflated tires can decrease your gas mileage by approximately 3 percent, while properly inflated tires are safer and last longer. Check pressure in all four tires every two weeks with an accurate, hand-held air pressure gauge.
Know your octane: Do not purchase mid-grade or premium gasoline unless your owner’s manual specifically recommends it. According to AAA research, Americans waste more than $2.1 billion annually on premium gas in vehicles designed to run on regular fuel. AAA found no benefit to using premium gas in place of regular-grade fuel unless specifically called for. At the time of the study, 75% of U.S. drivers owned a vehicle that required only regular gasoline.
Avoid idling: Idling gets zero miles per gallon. Letting your vehicle idle for more than 10 seconds uses more gas than shutting it off and restarting. Don’t start your car until you are ready to go. The engine actually warms up more quickly once the car is operating, and will stay warm after stopping. Drive-up lanes can have your car idling for long periods. Instead, park and go inside instead.
Observe the speed limit: Gas mileage decreases rapidly at speeds above 60 mph. Each 5 mph you drive over 60 mph is like paying an additional 15 cents per gallon of gas. Using cruise control on the highway helps you maintain a constant speed and, in most cases, will save gas.
Drive sensibly: Aggressive driving (speeding, rapid acceleration and braking) wastes gas. It can lower your gas mileage by 33 percent at highway speeds and by 5 percent in the city.
Consolidate trips: Combining errands into one trip saves you time and money. Several short trips taken from a cold start can use twice as much fuel as a longer multi-purpose trip covering the same distance when the engine is warm. With a little planning, you can avoid retracing your route and reduce the distance you travel as well. You’ll not only save fuel but also reduce wear and tear on your car.
Minimize drag: Drag reduces fuel efficiency. Driving with the windows open, using roof- or rear-mounted racks and carrying heavy loads increase vehicle drag. A roof rack or carrier provides additional cargo space and may allow you to meet your needs in a smaller, more fuel-efficient car. However, a loaded roof rack can decrease your fuel economy by 5 percent. Reduce aerodynamic drag and improve your fuel economy by using a removable rack and placing items inside the trunk whenever possible. Avoid carrying unneeded items, especially heavy ones. An extra 100 pounds in the trunk reduces a typical car’s fuel economy by 1-2 percent.
AAA Blue Grass
