Virginia Might See Larger Jumps at the Pump This Month

VIRGINIA BEACH, VA. (May 3, 2021)— Not much reprieve at the pump to start May off as Virginia’s current gas price is at $2.73, a two cent up tick from last week and a $1.06 increase from last year. In some areas of the Commonwealth, gas prices are cheaper than the state average such as Hampton Roads at $2.67. However, gas prices are only a few cents more than in May of 2019 and 2018. The national average is seeing a similar pattern with the average at $2.90, three cents more than a month ago. Stable crude oil prices amid fluctuating demand helped keep the national average price jumps nominal last month.

“While April saw minimal fluctuation, May is likely to see much larger increases alongside demand spikes, especially closer to Memorial Day weekend,” said Holly Dalby, spokesperson for AAA Tidewater. “Compared to May 2019, U.S. gasoline demand is down only 4% and gas prices are on average just two cents more.”

Summer Fuel Supply

Last week, media reports surfaced that a shortage of fuel tank truck drivers may impact gasoline availability this summer. As gasoline demand increases, gas stations are working to adjust delivery schedules to keep pace. However, deliveries may be delayed in a small number of markets this summer causing select stations to see low to no fuel at some pumps for short periods, one or two days.

“With road trips expected to be popular this summer, some summer travel destinations, like beaches or mountains, may see some pumps affected. It is important to understand this is not a market-wide impact. Gas can be found at other stations within a market,” said Dalby. “The U.S. is not looking at a gas supply shortage; there is ample gasoline supply across the country. It is just a matter of more frequent deliveries to stations to meet demand.”

In markets where this happened last month, it was contained within a brand/chain at a select number of pumps. As a rule of thumb in general, AAA recommends that motorists consider filling up when their fuel level hits a quarter of a tank.

At the close of Friday’s formal trading session, WTI decreased by $1.43 to settle at $63.58. Although prices ended the day with a decrease, supported by a strong dollar, the price of crude increased by nearly $1.50 per barrel on the week. Increased market optimism that crude demand will recover, despite surging coronavirus infection rates in Asia, helped to lift prices. Prices could continue to climb this week if the market remains optimistic. Additionally, prices increased last week after the Organization of the Petroleum Exporting Countries (OPEC+) and its allies, including Russia, recommended leaving in place a recent agreement to gradually increase crude production by at least 2.1 million b/d in May and June. At the next OPEC+ meeting on June 1, the cartel will determine crude output levels for July and August.

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