Menu More MORE
AAA
Roadside... Roadside Assistance

Higher Prices at the Pump Have Virginians Wondering Why

Gilmore Gas

VIRGINA BEACH, VA. (January 25, 2021) – Prices at the pump have motorists questioning why the increase. Just last month, the average price for a gallon of gas in the Commonwealth was $2.10, which was 11 cents less than the current average of $2.31 today. Many are curious to know why. According to the latest Energy Information Administration (EIA) measurement, gasoline demand jumped from 7.53 million b/d to 8.11 million b/d. Typically a significant increase in demand results in a comparable decrease in supply, ultimately translating to more expensive pump prices. Surprisingly, the recent large jump in demand had little impact on gasoline supply and minimal impact on pump prices.

 

“Most motorists continue to see gas prices increase, but at a slower rate than the past few weeks,” said Holly Dalby, director of public affairs for AAA Tidewater Virginia. “Part of that is due to more stable crude oil prices throughout January. However, if demand continues another week of substantial increases, we can expect to see pump prices get more expensive.”

 

At the pump, the national average increased by two cents on the week to $2.40.

With the national average 15 cents more expensive than this time last month, every state gas price average is more expensive than December.

 

 

Jan. 25, 2021

Week Ago

Month Ago

Year Ago

National

$2.40

$2.38

$2.25

$2.53

Virginia

$2.31

$2.30

$2.10

$2.32

Hampton Roads

$2.26

$2.25

$2.11

$2.29

 

 

At the close of Friday’s formal trading session, WTI decreased by 86 cents to settle at $52.36. Crude prices declined last week following market concern that crude demand may suffer as coronavirus infections rise and travel restrictions, which are meant to curb transmission of the virus, reduce crude demand. For this week, crude prices may continue to drop if market concern regarding demand continues to grow.

 

As part of North America’s largest motoring and leisure travel organization, AAA Tidewater Virginia provides its more than 350,000 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.

#              #              #

CST 1016202-80 Copyright © Tidewater Automobile Association of Virginia, Incorporated. All Rights Reserved.
AAA Tidewater Virginia is a member club affiliated with the American Automobile Association (AAA) national federation and serves members in the Tidewater Virginia region (All Hampton Roads cities, including Norfolk, Chesapeake, Suffolk, Portsmouth, Virginia Beach, Hampton, Newport News, Williamsburg; Virginia's Eastern Shore; as well as the following counties: Greensville, Surry, Brunswick, Isle of Wight, Gloucester, Lancaster, Middlesex, Richmond County, Southampton, Sussex, Mecklenburg, James City County, York, Lunenburg, Essex, King & Queen, Mathews, Northumberland, and Westmoreland).