Gasoline demand hits record high as AAA predicts prices will increase this week

Gasoline Quality
Posted at 1:00 PM, Jul 12, 2021
and last updated 2021-07-12 13:00:34-04

VIRGINIA BEACH, Va. – AAA released an update on gas demand Monday and said it has soared to record highs.

At 10 million b/d, gasoline demand reached a new Energy Information Administration (EIA) record last week, and that number only partially reflects Independence Day holiday weekend travel. The nearly 1 million b/d jump in demand drove down gasoline supplies by 6.1 million bbl to 235,000 million bbl and consequently pushed the national average pump price up to $3.14.

The price of crude oil, which fluctuated last week following OPEC’s failure to reach an agreement on production increases, continues to be a dominant factor in determining how high prices will go this summer. Last week ended with higher crude prices than the start, though still under $75/bbl. AAA said they believe those prices have the potential to increase this week, which will only lead to more expensive pump prices, especially amid robust demand.

In Virginia, gasoline prices held steady. State-wide, the average remained $2.94 for the second week, which is only two cents higher than a month ago but 95 cents higher than last year this time. In Hampton Roads, the average stayed at $2.92. This is four cents higher than last month and $1.00 higher than last year.

On the week, about 25 state averages increased by at least two cents with a few seeing a jump of nine cents or more. State averages range from as low as $2.76 in Mississippi to as expensive as $4.31 in California.

As pump prices continue to increase, AAA members can save at the pump by joining the Fuel Rewards at Shell program at Members save 30 cents per gallon on their first fill-up when they join between now and August 31, 2021. As part of the Fuel Rewards program, AAA Members earn Gold Status ongoing and save five cents per gallon every day on each individual gas purchase of up to 20 gallons from participating Shell stations with no minimum fill ups.