Retail gas prices appear to be close to their spring peaks.
“Pump prices are starting to level off in many markets as refineries increase production to meet record-high demand,” says AAA Oregon/Idaho Public Affairs Director Marie Dodds.
For the week, the national average for regular unleaded slips a penny to $2.21 a gallon. The Oregon average gains six cents to $2.41 a gallon.
Gasoline supplies are at their highest levels ever to start May, according to the U.S. Energy Information Administration. That’s helping to keep pump prices relatively low, even as drivers hit the road in record numbers.
Historically gasoline demand increases leading into the summer driving season, and that’s the case this year. Lower gas prices are fueling a notable growth in gasoline demand. AAA says the 2016 summer driving season is expected to rival 2007 when gasoline demand hit an all-time high.
Gasoline demand reached its fourth-highest weekly estimate for 2016 and remains well above year-over-year levels. Although the market is well supplied with product, the large jump in gasoline demand could cause pump prices to become volatile leading into the summer driving season. Refineries nationwide are ramping up production, which should help increase supplies in regional markets. This is good news for drivers, because if supply can keep pace with demand, averages should remain relatively low and drivers should continue to benefit from comparative savings at the pump.
Gas prices on the West Coast remain some of the highest in the nation. California is most expensive, followed by regional neighbors Hawaii, Washington, Nevada and Alaska rounding out the top five most expensive states. Oregon is seventh up from 10th a week ago. The nation’s least expensive markets are Oklahoma ($1.95) and Kansas ($1.98).
