MADISON, Wis., (May 16, 2022) – With the national average cost for regular gas steadily climbing, three states—Georgia, Kansas, and Oklahoma—are still holdouts for crossing the $4 per gallon mark. The national average for a gallon of gasoline is now $4.48. The increase is primarily due to the high cost of crude oil, which is hovering near $110 a barrel.
“The high cost of oil, the key ingredient in gasoline, is driving these high pump prices for consumers,” said Nick Jarmusz, director of public affairs for AAA – The Auto Club Group. “Even the annual seasonal demand dip for gasoline during the lull between spring break and Memorial Day, which would normally help lower prices, is having no effect this year.”
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 3.6 million bbl to 225 million bbl last week. Gasoline demand also decreased slightly from 8.86 million b/d to 8.7 million b/d. Typically, lower demand would put downward pressure on pump prices. However, crude prices remain volatile, and as they surge, pump prices follow suit. Pump prices will likely face upward pressure as oil prices stay above $105 per barrel.
Meanwhile, the switch to the more expensive summer blend of gasoline, which usually adds seven to ten cents per gallon depending on the market, is happening now. This switchover should be complete nationwide by early June. This summer blend switch is an annual event. It is unrelated to the Biden Administration’s announcement a few weeks ago to allow the higher ethanol E15 gas blend to remain on sale throughout the summer until September.
For those in the market for a new fuel-efficient ride in 2022, the latest online AAA Car Guide is now available. All category winners are electric or electric hybrid vehicles. The AAA Car Guide also contains detailed information about AAA’s recent research on current automotive technologies and topics, such as driver assistance systems, gasoline quality, headlight effectiveness, etc.
Today’s national average for a gallon of gas is $4.48, which is 40 cents more than a month ago, and $1.43 more than a year ago.
|
Monday |
Sunday |
Week Ago |
Month Ago |
One Year Ago |
|
|
National |
$4.483 |
$4.470 |
$4.328 |
$4.077 |
$3.044 |
|
Wisconsin |
$4.225 |
$4.219 |
$4.110 |
$3.781 |
$2.881 |
|
Appleton |
$4.095 |
$4.097 |
$3.981 |
$3.667 |
$2.776 |
|
Eau Claire |
$4.186 |
$4.179 |
$4.098 |
$3.769 |
$2.884 |
|
Green Bay |
$4.170 |
$4.170 |
$4.086 |
$3.726 |
$2.863 |
|
Janesville-Beloit |
$4.197 |
$4.187 |
$4.095 |
$3.765 |
$2.830 |
|
La Crosse |
$4.140 |
$4.140 |
$3.998 |
$3.762 |
$2.877 |
|
Madison |
$4.157 |
$4.153 |
$4.056 |
$3.732 |
$2.836 |
|
Milwaukee |
$4.361 |
$4.349 |
$4.233 |
$3.852 |
$2.904 |
|
Wausau |
$4.210 |
$4.196 |
$4.101 |
$3.738 |
$2.906 |
Click here to view current gasoline price averages
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by $1.51 to settle at $109.77. Crude prices rose last week after the European Union announced a proposal to ban Russian oil imports within six months, while refined product imports would be prohibited by the end of 2022. The price increases occurred despite continuing COVID lockdowns in China weighing down crude demand and EIA reporting that total domestic crude inventories increased by 1.3 million bbl to 415.7 million bbl, which is approximately 14 percent lower than the storage level at the end of April 2021. Since supply remains tight and the market remains highly volatile, crude prices will likely continue to fluctuate this week, potentially pushing pump prices higher.
Motorists 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.
## ## ##