Gas Prices in Virginia Continue to Climb Higher

VIRGINIA BEACH, VA. (March 8, 2021) – Motorists in the Commonwealth continue to experience higher prices at the pump. The current average at $2.65, 33 cents more than last month.  Pump prices are increasing as refinery utilization is at an all-time low and crude oil prices (WTI) surged by more than $2/bbl to $66/bbl on Friday, the highest price in nearly two years. The jump in crude followed the Organization of the Petroleum Exporting Countries’ and their allies’, collectively known as OPEC+, surprise decision to minimally increase production in April.

“With crude oil prices back on the rise, we could see Virginia’s average price for gas to climb this spring with some relief by early summer,” said Holly Dalby, spokesperson for AAA Tidewater Virginia.

The Energy Information Administration’s (EIA) report for the week ending February 26 shows refinery capacity at 56%, which is the lowest rate recorded by the agency. It is also 12 percentage points below last week and 18 percentage points lower than a year ago. With refinery utilization at a record low, gasoline supplies tightening, demand modestly increasing and crude prices on the rise, cheap prices are in the rear-view mirror for the immediate future.

At the close of Friday’s formal trading session, WTI increased by $2.26 to settle at $66.09. At the end of last week, OPEC+ announced the decision to add only about 170,000 barrels per day to world markets in April.  The industry had been expecting a production increase of about 1.5 million barrels per day in April, with more oil released in May, June, and beyond. This decision sent crude oil surging to the highest price point since April 2019.

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.