AAA: Gas Prices Increase with Oil Prices on the Rise (It's Only The Beginning)

This week’s average prices: Western Central KY Average $2.294

Average prices of unleaded self-serve gasoline in various areas:

$2.281 Bowling Green
$2.252 Elizabethtown
$2.389 Louisville
$2.195 Owensboro
$2.355 Paducah

Trend Analysis:

At $2.46, the national gas price average is more expensive on the week (+4 cents), the month (+16 cents) and the year (+2 cents). This past Saturday, February 6, was the first time in 340 days the national average was more expensive than a year ago. Today, nearly two-thirds of all state gas price averages are more expensive year-over-year. Pump prices continue to climb, in part due to expensive crude oil and the market’s growing optimism that demand will increase amid the vaccination roll-out.

Up to $56/barrel, crude oil increased last week following Organization of the Petroleum Exporting Countries’ (OPEC) decision to keep their production cuts unchanged—a decision influenced by the ongoing impact of the pandemic on gasoline demand. Crude has not been priced this high since January 2020. Typically, it can take a few weeks before pump prices see the impact of more expensive crude, and with crude accounting for more than 50% of the retail price, increases are very likely to continue.

On the week, 46 state gas price averages are more expensive with 13 states seeing a nickel or more increase. Motorists in Florida (+11 cents), Michigan (+11 cents) and West Virginia (+10 cents) saw the largest weekly increases.

Motorists can find current gas prices nationwide, statewide, and countywide at GasPrices.AAA.com.