CHARLOTTE, N.C. (News Release) — Gas prices in the Carolinas dropped another one to two cents last week, with motorists continuing to find discounts at the pump – but those prices could soon edge upward due to the price surge in crude oil, which is closing in on $80 per barrel. Since the global price for oil accounts for nearly half of what consumers pay at the pump, higher oil costs will usually result in higher gasoline costs.
“In times of tight supply it doesn’t take much to put upward pressure on the overall price of oil,” said Tiffany Wright, spokesperson, AAA – The Auto Club Group in the Carolinas. “January gas prices are often driven down because of lower fuel demand but that downward trend could soon come to an end.”
Today’s current gas price average in North Carolina is $3.05, declining one cent on the week. This is 8 cents less than a month ago and 86 cents more than last year. South Carolina’s current gas price average is $3.01, declining two cents on the week. This average is the same as a month ago and 92 cents more than last year.
The national average for a gallon of gas rose two cents to $3.30, which is three cents less than a month ago and $1.01 more than last year.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks rose by 10.1 million bbl last week. On the other hand, gasoline demand decreased from 9.72 million b/d to 8.17 million b/d. Typically, pump prices decline due to lower gas demand and a rise in total stocks, but continued growth in the price of crude oil has helped to elevate pump prices. As oil prices continue to climb near $80 a barrel, pump prices will likely follow suit.
Although prices moved lower on Friday due to contract pricing fluctuations at the beginning of the year and demand concerns over the COVID-19 Omicron variant, crude prices increased overall last week after the EIA reported that total domestic crude stocks decreased by 2.1 million bbl last week. The current stock level is approximately 14 percent lower than at the end of December 2020, contributing to pressure on domestic crude prices. For this week, crude prices could continue to climb if EIA’s next report shows another inventory decline.
For updated state and metro prices log on to https://gasprices.aaa.com
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile
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 62 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.
