VIRGINIA BEACH, VA. (June 24, 2015) – Even though gas prices have risen, the savings per gallon compared to last year are still high. Currently, the average price for unleaded gasoline in Hampton Roads is $2.61, which is seven cents more than last month, but still 95 cents less than last year.
“Many drivers are noticing an uptick in gas prices for the first time in months,” said Georjeane Blumling, AAA Tidewater’s spokesperson. “While it is typical to see gas prices increase this time of year due to refinery issues consumers should still experience the lowest gas prices seen in years.”
After reaching a new high for 2015 last week ($2.80), the national average price for regular unleaded gasoline has dropped slightly to $2.78 per gallon. Today’s price is four cents higher than one month ago and remains significantly discounted from this time last year with drivers saving an average of 90 cents per gallon year-over-year.
Pump prices in recent days have stabilized or even dropped in many areas as refineries solve productions issues. For example, ExxonMobil’s refinery in Joliet, Ill. and PBF Energy’s refinery in Toledo, Ohio are reportedly operating at normal rates following recent malfunctions, which should further support the region’s gasoline supplies. Gasoline production typically increases this time of year in anticipation of summer demand, and high profit margins should incentivize refineries to produce more gasoline in the near future, which may help lower gas prices.
Crude oil prices moved lower late last week due to a stronger U.S. dollar amid concerns about Greece’s financial instability. Eurozone leaders are continuing to negotiate in hopes of preventing a Greek default. A default or Greece’s exit from the Euro group would likely impact financial markets and could reduce global energy demand. The Organization of the Petroleum Exporting Countries (OPEC) reported its largest production levels since October 2012, and the U.S. also continues to produce at record levels. This means the global market is likely to remain oversupplied in the near term and any reductions in demand are expected to put downward pressure on price and exacerbate the current dynamic of oversupply. At the close of Friday’s formal trading on the NYMEX, WTI was down 84 cents and settled at $59.61 per barrel.
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