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08/04/2023

AAA: Relief at the Pump Could Be Coming

The national average increased by 11 cents since last week to $3.82.
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A gas pump

WASHINGTON, D.C. — The ups and downs at the pump continue. Though gas prices rose again this past week, the increase slowed from previous weeks and more relief could be on the horizon.

[Read more: Gas Prices Rise as Summer Temperatures Heat Up]

According to AAA, the national average increased by 11 cents since last week to $3.82. Pump prices have primarily risen due to the price of oil, which was near $80 per barrel last week, but has since softened recently.

"Last month's extreme heat played a role in the recent spike in gas prices due to some refineries pulling back, but now operations are getting back to normal," said Andrew Gross, AAA spokesperson. "Coupled with tepid demand and declining oil prices, this may help take the steam out of the tight supply price jolts we've seen lately."

According to new data from the Energy Information Administration, gas demand decreased slightly from 8.94 to 8.84 million barrels per day last week. Total domestic gasoline stocks increased by 1.5 million barrels to 219.1 million barrels.

Lower gas demand amid increasing supply will likely help to slow price increases in the days ahead, AAA added.

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AAA chart comparing gas prices from 2019-2023

On Aug. 3, the national average of $3.82 was 29 cents more than a month ago and 34 cents less than a year ago.

Since July 27, 10 states have seen the largest increases in their averages: Nebraska (+25 cents), Iowa (+23 cents), Minnesota (+21 cents), Florida (+19 cents), Missouri (+18 cents), North Dakota (+18 cents), Oklahoma (+17 cents), South Dakota (+17 cents), New Mexico (+16 cents) and Alabama (+16 cents).

The nation's top 10 least expensive markets are: Mississippi ($3.32), Louisiana ($3.43), Alabama ($3.45), Kentucky ($3.46), Ohio ($3.46), Tennessee ($3.48), Texas ($3.49), Arkansas ($3.49), South Carolina ($3.53) and Oklahoma ($3.56).