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AAA: No Spike Expected in August Gas Prices

8/4/2020

NATIONAL REPORT — The national gas average is holding steady, and AAA doesn't expect a spike in prices during the final month of summer.

On the week, the national gas price average held steady at $2.18 as most state averages saw minimal impact at the pump. Apart from a few outliers — Florida (10 cents), Utah (10 cents) and Idaho (5 cents) — state averages either decreased by 4 cents or less or increased by no more than 2 cents.  

"This summer is no doubt the cheapest at the pump for motorists in more than a decade. The last two months have yielded a national average of $2.14," said Jeanette Casselano, AAA spokesperson. "While we expect to see typical fluctuation, August gas prices are not expected to spike, especially amid increases in COVID-19 cases."

Gas prices are trending cheaper despite an increase in demand. Over the last week, gas demand jumped 3 percent — the highest reading since the pandemic started. However, year-over-year demand is down about 8 percent, according to the Energy Information Administration.

In addition to Florida, Utah and Idaho, the states with the largest weekly changes rounding out the top 10 include Washington, D.C. (-4 cents), Indiana (-4 cents), Michigan (-2 cents), Ohio (-2 cents), West Virginia (-2 cents), Oklahoma (-2 cents) and Colorado (-2 cents).

The nation's top 10 least expensive markets are Mississippi ($1.82), Louisiana ($1.85), Texas ($1.86), Arkansas ($1.87), Alabama ($1.88), Oklahoma ($1.88), Missouri ($1.89), South Carolina ($1.90), Tennessee ($1.92) and North Carolina ($1.96).

Impact of Tropical Storm Isaias

Today's national average — which is 1 cent more than July and 53 cents cheaper than last year — has been largely unaffected by Tropical Storm Isaias.

According to the National Hurricane Center, the storm is likely to regain hurricane strength before reaching the coast between northeastern South Carolina and southern North Carolina.

Given lower than normal U.S. gasoline demand and healthy stock levels, gas prices nationally are not likely to be impacted by Isaias, AAA reported.

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