VIRGINIA BEACH, VA (October 29, 2018) – With Halloween being only days away, gas prices in Virginia seem to be trickling down. Is this a trick or a treat that will linger through the holidays? Currently, Virginia ranks 10th least expensive gas prices in the U.S. Today’s average price for a gallon of gas in the Commonwealth is $2.58, which is five cents less than last week but a chilling 32 cent increase from last year. Gas prices in Hampton Roads are currently $2.52 which is even less than the state average by six cents, a five cent decrease from last week, but a frightening 31 cent jump from last year’s prices.
The national gas price average has been dropping slowly and steadily for the past 16-days. At $2.82, the national gas price average is the lowest since mid-September, but the cheaper gas prices may just be a temporary treat for motorists.
“Just like the outside temperature, motorists are seeing gas prices cool off. The last few weeks saw peak refinery maintenance season start to wrap-up and push less expensive gas prices, but the lower prices are not likely to be a long-term trend,” said Georjeane Blumling, spokesperson for AAA Tidewater Virginia. “AAA expects that gas prices will likely start to increase as early as later this week ahead of the Nov. 4 Iran sanctions announcement and the mid-term elections.”
How expensive gas prices will be depends on how the market reacts to the early November events. However, motorists are not likely to pay summer prices this winter.
At the close of Friday’s formal trading session on the NYMEX, WTI increased 26 cents to settle at $67.59. Crude prices ended last week with mostly losses, following release of EIA’s weekly petroleum report that showed crude inventories increased for the fifth consecutive week. Domestic crude inventories gained 6.3 million bbl to total 422.8 million bbl – a level not seen since the beginning of the driving season in June, according to EIA’s latest data. If this week’s EIA report shows another substantial build in total crude inventories, prices are likely to face more downward pressure. However, the potential price decline is likely to be short-lived, as U.S-imposed sanctions on Iran’s crude exports will take effect on Sunday, which may heighten fears in the market about reduced global supply amid growing global crude demand.
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.