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National average of gas hits new record of $5.01 per gallon; Kentucky average rises 13 cents to $4.79

The national average of a gallon of gas reached $5.01 Tuesday — an all-time high never seen since AAA began collecting pricing data in 2000.

The cost of a barrel of oil is over $120, nearly double last August’s price, as increased oil demand outpaces the tight global supply. Meanwhile, domestic gasoline demand remains robust as the summer driving season ramps up. As a result, the national average for a gallon of gas surged and is 15 cents more than a week ago, 58 cents more than a month ago, and $1.94 more than a year ago.

“The busy summer road trip season is likely behind the increase in demand, which is probably why we still haven’t seen a drop in demand as a reaction to high prices at the pump,” said Lori Weaver Hawkins, public affairs manager, AAA Blue Grass. “But people have already begun changing their daily driving behaviors because of increasing gas prices.”

(NKyTribune file)

According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 800,000 barrels to 218.2 million barrels last week. Meanwhile, gasoline demand grew from 8.98 million barrels a day to 9.2 million barrels a day as drivers continue to fuel up for the summer driving season, typically a time when gas demand increases. This dynamic between decreased supply and increased demand is contributing to rising prices at the pump. Coupled with increasing crude oil prices, this means that the price of gas will likely remain elevated for the near future.

Tuesday’s national average for a gallon of gas is $5.01, which is 57 cents more than a month ago, and $1.94 more than a year ago.

Kentucky’s gas price average is now at $4.79, which is 13 cents higher on the week and 69 cents higher on the month. Today’s price is $1.89 more than a year ago.

Pendleton, Campbell, and Kenton counties have the highest average gas price in Kentucky at $4.99. Lowest averages in the Commonwealth can be found in Bell County at $4.52, followed by Fulton and Henderson counties at $4.54.

Checking nearby, the average price for a gallon of unleaded in Ohio is $5.05, West Virginia $4.91, Virginia $4.86, Tennessee $4.64, Indiana $5.22, Illinois $5.56 and Missouri $4.67.

The highest spot in the nation is California at $6.43, followed by Nevada at $5.65. The lowest gas price average in the nation can be found in Georgia, currently at $4.48.

Meanwhile, the national diesel fuel price average continues at a record $5.77, up 13 cents on the week. Here in Kentucky, the average price of diesel is a new record high $5.76, climbing 22 cents in the past week.

The nation’s top 10 largest weekly increases: West Virginia (+28 cents), Montana (+27 cents), Colorado (+25 cents), Kansas (+23 cents), Virginia (+23 cents), Missouri (+22 cents), North Dakota (+22 cents), Indiana (+22 cents), Ohio (+22 cents) and New Mexico (+21 cents).

The nation’s top 10 most expensive markets: California ($6.43), Nevada ($5.65), Alaska ($5.56), Illinois ($5.56), Washington ($5.54), Oregon ($5.53), Hawaii ($5.53), Arizona ($5.31), Washington, D.C. ($5.26) and Indiana ($5.05).

At the close of Friday’s formal trading session, West Texas Intermediate decreased by 84 cents to settle at $120.67. Although prices ended lower on Friday due to the rising value of the dollar, crude prices increased earlier last week in response to global supply concerns amid expected demand increases, particularly as China emerges from lockdowns that reduced crude demand. Crude prices have increased despite EIA reporting that total domestic stocks increased by 2.1 million bbl to 416.8 million bbl last week. However, the current storage level is still approximately 12 percent lower than a year ago, contributing to rising crude prices. Crude prices could rise further this week if EIA’s next report shows an inventory decline.

AAA Blue Grass

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