VIRGINIA BEACH, Va., (August 29, 2016) – While gas prices have climbed for 11 days straight in Virginia, the Commonwealth still is ranked 5th least expensive average gas price in the U.S. Currently, the price for gas in Virginia is $2.02 which is seven cents higher than last week and last month but 20 cents lower than last year. Hampton Roads is running head to head with the state average with the current price of regular gas at $2.01, six cents higher than last week, 13 cents more than last month, and 20 cents lower than last year. Despite the increase, drivers are paying 27 cents less than they did at this same time last year and are on track to pay the lowest Labor Day gas prices in 12 years, since 2004.
According to a AAA survey, 55 percent of Americans say they are more likely to take a road trip this year due to lower gas prices. OPIS projects that Americans will purchase about 400-million gallons of gasoline each day over Labor Day weekend, at an aggregate cost of about $880-million per day. While the national year-over-year discount remains, it has closed substantially from more than fifty cents just ten days ago.
A number of factors have been driving prices higher for motorists including: higher crude oil prices, refinery issues in the Gulf Coast, and the threat of a tropical weather system moving into the Gulf of Mexico. The rising crude oil prices can be attributed, in part, to talks of an agreement to limit production amongst OPEC countries and news from the U.S. Federal Reserve that the U.S. may raise interest rates in the next couple of months.
West Texas Intermediate oil prices briefly fell below $40 per barrel in July, but have turned higher in August. Prices retreated slightly last week from their recent high of $48.52 set on August 19, but remain more than 10% higher than one month ago. At Friday's close of formal trading on the NYMEX, WTI was up 31 cents to settle at $47.64 per barrel.
Drivers can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
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 on Facebook at facebook.com/AAATidewaterVirginia