VIRGINIA BEACH, VA. (December 4, 2014) - With the holidays fast approaching, Virginia’s average price for regular unleaded fuel is $2.58. A welcome sight as drivers plan their holiday visits. This is 64 cents lower than last year and 19 cents lower than last month. The average price for regular gas in the Hampton Roads area is currently $2.60, 64 cents lower than last year and 18 cents lower than last month. On the National front the average price of gas is $2.73 per gallon, which is the lowest average daily price since October of 2010. Gas prices nationally are about 53 cents per gallon less expensive than a year ago, which is the greatest year-over-year savings since 2009. AAA estimates that Americans are saving about $200 million per day on gasoline compared to a year ago.
“Gas prices have fallen at a remarkable pace that would have been unthinkable just a few months ago,” said Georjeane Blumling, spokesperson for AAA Tidewater Virginia. “Lower gas prices represent real tangible savings as everyone begins their holiday shopping.”
AAA expects gasoline to drop another 15-20 cents per gallon in the near term as retail prices catch up with steep declines in the cost of both crude oil and wholesale gasoline. Gas prices likely will remain relatively low this winter due to abundant supplies and OPEC’s decision to maintain crude oil production.
OPEC chose to maintain an oil production target of 30 million barrels per day at its recent meeting on November 27, despite the recent decline in the cost of crude oil. OPEC reportedly made this decision to maintain market share and compete with U.S. tight oil producers. WTI Crude Oil Spot Price is at a current level of 68.98, up from 65.94 the previous market day and down from 92.55 one year ago. This is a change of 4.61% from the previous market day and -25.47% from one year ago.
Gas prices typically remain low in winter because people drive less and do not use as much gasoline during the colder months. There is little reason to expect gas prices to increase significantly until spring unless there is an unexpected spike in the cost of crude oil or an unanticipated disruption to domestic refining or distribution, which could send prices higher in an impacted region.
As part of North America’s largest motoring and leisure travel organization, AAA Tidewater Virginia provides its more than 325,000 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