Gas Prices Jump Following Hurricane's Arrival

The average price of gasoline across Western Pennsylvania is 11 cents higher this week at $2.584 per gallon, according to AAA East Central’s Gas Price Report.

This week’s avg. prices

Western Pennsylvania Average – $2.584

Average price during the week of Aug. 24, 2020 – $2.471

Average price during the week of Sept. 3, 2019 – $2.750

The average price of unleaded self-serve gasoline in various areas:

$2.579 Altoona

$2.589 Beaver

$2.598 Bradford

$2.599 Brookville

$2.585 Butler

$2.576 Clarion

$2.542 DuBois

$2.587 Erie

$2.574 Greensburg

$2.599 Indiana

$2.595 Jeannette

$2.584 Kittanning

$2.599 Latrobe

$2.591 Meadville

$2.574 Mercer

$2.541 New Castle

$2.587 New Ken.

$2.599 Oil City

$2.555 Pittsburgh

$2.595 Sharon

$2.604 Uniontown

$2.599 Warren

$2.584 Washington

Trend Analysis

The national gas price average increased by a nickel on the week to $2.23 after Hurricane Laura made landfall in the south. The national average is a nickel more than last month, and 35 cents cheaper than a year ago. On the week, all but five states saw gas price averages increase. Of those that saw jumps, nearly 20 state averages are 5 to 15 cents more expensive.

While it’s typical to see increased demand and more expensive gas prices ahead of a major storm, prices could start to cool off in the weeks ahead. The latest industry reports indicate that gasoline facilities in Texas have already begun the restarting process, which means there is no major threat to inventory. However, operations in the Lake Charles, La., region are still down, and could be for a period of time. Also, in the Gulf of Mexico, the Bureau of Safety and Environmental Enforcement (BSEE) reports that 70% of current oil production is still shuttered. AAA will continue to monitor developments and subsequent impacts on gas prices.

The second factor pushing prices more expensive this week is demand. The Energy Information Administration (EIA) reports that demand increased from 8.63 million b/d to 9.16 million b/d. Even though this is one of the highest levels all year, it’s still about 739,000 b/d lower than the rate at this time last year.

At the end of Friday’s formal trading session, West Texas Intermediate decreased by seven cents to settle at $42.97 per barrel. 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. However, the EIA’s latest weekly report revealed that total domestic crude inventories are 80 million barrels higher than where they were during this time in August 2019. The higher level could play a role in stabilizing crude prices.

Motorists can find current gas prices nationwide, statewide, and countywide at GasPrices.AAA.com.

About AAA: AAA East Central is a not-for-profit association with 78 local offices in Kentucky, New York, Ohio, Pennsylvania and West Virginia serving 2.7 million members. News releases are available at news.eastcentral.aaa.com. Follow us on Twitter and Facebook.