MADISON, Wis.—As the cost of a barrel of oil has remained near $110, the gas price decline has slowed.
After hitting $4.33 on March 11, the national average for a gallon of gasoline is now $4.24, but only down a penny since last week. Domestically, gasoline demand is again defying seasonal trends and has dipped for the second straight week, perhaps due to higher pump prices and consumers altering their driving habits.
“The global oil market reflects the volatility caused by the war in Ukraine grinding onward,” said Nick Jarmusz, director of public affairs for AAA—The Auto Club Group. “And with oil prices refusing to fall, the price at the pump is likewise meeting resistance at dropping further.”
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks fell by 3 million bbl to 238 million bbl last week. Gasoline demand also decreased from 8.94 million b/d to 8.63 million b/d. The drop in gas demand is contributing to price decreases. However, the steady increase in the price of oil is slowing that decline. If oil prices continue to rise, pump prices will likely follow suit, reversing course from the current downward trend.
Today’s national average for a gallon of gas is $4.24, which is one cent less than a week ago, 63 cents more than a month ago, and $1.38 more than a year ago.
