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Still Paying More at the Pump This Week, But Relief Could Be On the Way

August 6th, 2023 by WCBC Radio

The national average for a gallon of gas has continued its summer U-turn, but price increases have slowed and more relief could be on the way. The national average has increased by 10 cents since last week to $3.83. Pump prices have primarily risen due to the price of oil, which was near $80 per barrel last week.

“Some refineries had to limit production last month due to the extreme heat that blanketed most of the country,” said Ragina C. Ali, Public and Government Affairs Manager for AAA Mid-Atlantic. “That, coupled with increased oil prices were the primary factors in the recent spike in gas prices.”  

According to new data from the Energy Information Administration (EIA), gas demand decreased slightly from 8.94 to 8.84 million b/d last week. Meanwhile, total domestic gasoline stocks increased by 1.5 million bbl to 219.1 million bbl. Lower gas demand amid increasing supply will likely help to slow price increases in the days ahead.

In Maryland, the gas average is $3.79 today, up 8 cents in the last week, 29 cents in the past month, and down 32 cents compared to one year ago. The Washington, D.C. metro gas price average is $3.80 per gallon, up 11 cents in the past week, 31 cents in the past month and 38 cents lower than one year ago. Today’s national average of $3.83 is 31 cents more than a month ago and 30 cents less than a year ago.

CURRENT AND PAST GAS PRICE AVERAGES – June 13, 2023

Regular Unleaded Gasoline (*indicates record high)

 

8/4/23

Week Ago

Month Ago

Year Ago

National

$3.83

$3.73

$3.52

$4.13

Maryland

$3.79

$3.71

$3.50

$4.11

Washington, D.C.

$3.94

$3.84

$3.69

$4.39

Washington, D.C. Metro Area

$3.80

$3.69

$3.49

$4.18

Annapolis

$3.78

$3.71

$3.50

$4.02

Baltimore

$3.79

$3.72

$3.49

$4.03

Bowie

$3.78

$3.69

$3.52

$4.14

Cumberland

$3.65

$3.50

$3.31

$4.32

Frederick

$3.76

$3.69

$3.47

$4.13

Hagerstown

$3.69

$3.67

$3.39

$4.17

Salisbury

$3.78

$3.72

$3.48

$4.01
 

“This time last year gas prices were above $4.00/per gallon throughout the region, causing motorists to adjust driving and spending habits,” said Ali. “Today gas prices are approximately 30 cents less per gallon, which despite recent increases may bode well for those taking an end of summer, August road trip,” Ali added.

At the close of Thursday’s formal trading session, WTI decreased by $2.06 to settle at $81.55 per barrel. Oil prices tumbled on Wednesday after the U.S. credit rating declined, increasing market fears that oil demand could decline if the economy eases. If oil demand drops, prices would likely follow suit.

“With refinery operations returning to normal, along with tepid demand and declining oil prices, this may help take the steam out of the tight supply price jolts we’ve seen lately,” said Ali.

AAA has a variety of resources to help motorists save on fuel: