Gas prices in West Central Kentucky are two cents higher this week at $2.025, according to AAA East Central’s Gas Price Report.
States in the Great Lakes and Central region mostly saw prices move upward this week. Indiana (+11 cents) and Michigan (+9 cents) had the highest increases in the country, and Ohio (+4 cents) and Illinois (+4 cents) also land on the top 10 list for largest increases. All other states in the region saw pump price increases of only a few cents, if at all.
Even with the increases, motorists in the region are paying 50 to 75 cents less a gallon to fill up compared to last July. Illinois (-76 cents), Indiana (-69 cents), Michigan (-69 cents) and Ohio (-68 cents) have among the largest year-over-year differences in the country.
With a 2-million-barrel draw, the region saw inventory decrease for a third week in a row down to 50.6 million barrels. This drops total stock levels to not only the lowest measurement of the year, but the lowest since December 2019, according to Energy Information Administration (EIA) data. If stock levels continue to push lower, the region can expect to see incremental price changes at the pump.
This week’s average prices: Western Central KY Average $2.025
Average price during the week of July 6, 2020 $2.000
Average price during the week of July 15, 2019 $2.649
Average prices of unleaded self-serve gasoline in various areas:
$1.990 Bowling Green
$1.886 Elizabethtown
$2.304 Louisville
$1.911 Owensboro
$2.034 Paducah
On the National Front
Gasoline demand increased on the week to the highest level (8.7 million b/d) since March as stocks decreased, but the combination wasn’t enough to significantly impact gas price averages across the country. On the week, the national gas price average only increased one penny to land at $2.19. That is nine cents more than last month and nearly 60 cents less than a year ago.
EIA data show gasoline demand and supply have been on a roller coaster ride, largely as motorists react to unfolding COVID-19 information. From May to early July in 2019, gasoline demand averaged 9.5 million b/d. For the same time period this year, demand is measuring at 8 million b/d while gasoline stocks sit, on average, at a 24-million-barrel surplus. The low demand and high supply are keeping gas prices relatively cheap for the summertime.
At the end of Friday’s formal trading session, West Texas Intermediate increased by 93 cents to settle at $40.55 per barrel. Domestic crude prices were volatile last week after the EIA’s weekly report revealed that total domestic crude inventories increased by 5.7 million barrels to 539.2 million. Increasing crude stocks could mean that crude production is still too high given where demand is currently.
Motorists can find current gas prices nationwide, statewide, and countywide at GasPrices.AAA.com.
AAA East Central is a not-for-profit association with 78 local offices in Kentucky, New York, Ohio, Pennsylvania and West Virginia serving 2.7 million members. News releases are available at news.eastcentral.aaa.com. Follow us on Twitter and Facebook.