Charlotte, N.C. (August 31, 2020) – North and South Carolina saw gas prices jump significantly over the week, with both states making the nation’s top 10 largest weekly increases.
“We saw pump prices jump and an increase in demand as a result of Hurricane Laura”, said Tiffany Wright, spokesperson, AAA – The Auto Club Group in the Carolinas. “It’s typical to see this happen right before a storm, especially one that threatens rigs and refineries.”
North Carolina’s average saw a nine cent increase on the week, now sitting at $2.12. This is 14 cents more than a month ago and 25 cents cheaper than last year. South Carolina’s average saw an eight cent increase on the week, now sitting at $2.00. This is nine cents more than a month ago and 23 cents cheaper than last year.
Another factor that caused prices to push more expensive was the EIA (Energy Information Administration) report that gas demand increased from 8.63 million b/d to 9.16 million b/d. Although this is higher than we’ve seen throughout the summer, this rate is significantly lower than the rate last year at this time. Additionally, total domestic gasoline supplies decreased by 4.6 million bbl last week to 239.2 million bbl, making the current level higher than the level at this time last year.
Today’s national average spiked upward by five cents on the week to $2.23, but is expected to push cheaper in the week ahead. This average is a nickel more than last month, but 35 cents cheaper than a year ago. On the week, all but five states saw state gas price averages increase.
Crude prices increased on the week as Tropical Depression Laura reduced crude production in the Gulf of Mexico. For this week, crude prices may rise again due to a weak U.S. dollar and if prolonged closure of rigs and production platforms tighten domestic crude inventories amid rising demand. However, EIA’s latest weekly report revealed that total domestic crude inventories, currently sitting at 507.8 million bbl, are 80 million bbl higher than where they were during this time in August 2019. The higher level could play a role in stabilizing crude prices.
For updated state and metro prices log on to https://gasprices.aaa.com/
About AAA – The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America with more than 14 million members across 14 U.S. states, the province of Quebec and two U.S. territories. ACG and its affiliates provide members with roadside assistance, insurance products, banking and financial services, travel offerings and more. ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety. For more information, get the AAA Mobile app, visit AAA.com, and follow us on Facebook, Twitter and LinkedIn.