VIRGINIA BEACH, Va., (October 31, 2014) - Virginia’s average price for regular unleaded fuel is $2.78. This is 34 cents lower than last year and 35 cents lower than last month. The average price for regular gas in the Hampton Roads area is currently $2.81, 24 cents lower than last year and 26 cents lower than last month. More than 60 percent of U.S. gas stations are selling gas for less than $3.00 per gallon today. Consumers can find at least one station selling gas for less than that price in 47 states – the exceptions being Hawaii, Alaska and Wyoming. More than 10 percent of U.S. gas stations are selling gas for less than $2.75 per gallon today.
The five states with the highest average prices today include: Hawaii ($4.04), Alaska ($3.73), New York ($3.37), California ($3.33) and Connecticut ($3.33). The five states with the lowest gas prices today include: South Carolina ($2.75), Tennessee ($2.75), Mississippi ($2.78), Virginia ($2.78) and Texas ($2.80).
Gas prices have dropped unexpectedly quickly in recent weeks mainly due to the decline in the cost of crude oil. The price of West Texas Intermediate crude oil has dropped more than $20 per barrel since late June and more than $10 per barrel since late September due to abundant supplies. Crude oil experienced the biggest one-day drop in two years on October 14.
Strong oil production has led to higher supplies, and there are some assessments that the global economy is weakening, particularly in Europe and Asia. In addition, there are reports that major Middle Eastern oil producers, such as Saudi Arabia, might be willing to accept lower oil prices in order to maintain market share. If these reports are true, oil prices are likely to remain at current levels or even drop further. OPEC is scheduled to meet and discuss production quotas in November.
Gas prices typically decline in the fall due to the switchover to less expensive winter-blend gasoline and a decline in demand. Winter-blend gasoline costs less to produce than the equivalent summer blend and those cost savings are gradually passed on to consumers. Gasoline demand also declines after the summer driving season and often continues to drop through winter.
As part of North America’s largest motoring and leisure travel organization, AAA Tidewater Virginia provides its more than 325,000 members with travel, insurance, financial and automotive-related services. Since its founding AAA Tidewater Virginia has been a leader and advocate for the safety and security of all travelers. For more information, visit AAA.com and follow us on Twitter at Twitter.com/AAATidewaterVA or on Facebook at facebook.com/AAATidewaterVirginia