VIRIGNIA BEACH, VA (October 8, 2018) – Gas prices in Virginia saw a surprising six cent increase from last week, the highest since 2014 when gas prices were almost $3.00 per gallon. Today’s price for unleaded gas in the Commonwealth is $2.68, seven cents more than last month and a 35 cent increase from last year. In Hamptons Roads, gas prices are three cents less than the state average at $2.65, but still five cent more than last month and a 39 cent rise from last year.
The national gas price average increased three-cents on the week to $2.91. All but seven states are paying more on the week. Today’s national gas price average is six-cents more than a month ago and 41-cents more than a year ago.
“The September switch-over to winter-blend gasoline ushered in cheaper gas prices compared to the summer, but that drop was short lived,” said Georjeane Blumling, AAA Tidewater spokesperson. “Crude oil accounts for half of the retail pump price and crude is selling at some of the highest price points in four years. That means fall and year-end prices are going to be unseasonably expensive.”
Crude oil has priced higher amid concerns of global crude supply and geopolitical tensions, including pending sanctions with Iran and Venezuela’s unstable economy.
At the close of Friday’s formal trading session on the NYMEX, WTI increased a penny to settle at $74.34. Crude prices bounced between gains and losses last week due to concerns around the impact of U.S.-imposed sanctions on Iran, which will go into effect early next month and target Iran’s energy sector. The volatility is also attributed to concerns about the possible collapse of Venezuela’s economy. The increase in crude prices occurred despite crude oil inventories increasing by 8 million bbl to 404 million bbl last week, according to EIA. As speculation ramps up before the new sanctions on Iran take effect — which is driving increased investment in crude under the allure of even higher prices being reached later this year — crude prices will likely continue climbing next week.
As part of North America’s largest motoring and leisure travel organization, AAA Tidewater Virginia provides its more than 330,000 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 Facebook at facebook.com/AAATidewaterVirginia.