Gas prices are climbing again as drivers head toward the final stretch of summer, with the national average reaching $4.10 per gallon and setting a record for this point in August.
AAA said Thursday the average price for a gallon of regular gasoline increased about 3 cents over the past week, from $4.07 to $4.10. That’s nearly $1 higher than the $3.13 national average recorded at the same time last year.
August is also on pace to become the most expensive August on record for gasoline. The national monthly average stands at $4.06 so far, surpassing the $3.97 average recorded in August 2022.
The increase isn’t being driven by motorists using more gasoline. Demand actually declined last week, according to federal energy data, falling from 8.96 million barrels per day to 8.68 million.
Instead, AAA pointed to elevated crude oil prices amid continued instability in the Strait of Hormuz.
West Texas Intermediate crude settled at $85.83 per barrel Wednesday after gaining 89 cents during the trading session. Oil prices have remained in the $80-per-barrel range, putting upward pressure on the price refiners and ultimately consumers pay for fuel.
Gasoline supplies increased slightly during the week, from 208.7 million barrels to 209.4 million barrels, while domestic gasoline production averaged 9.7 million barrels per day.
U.S. crude oil inventories also increased by 4.4 million barrels to 428.8 million barrels, according to the Energy Information Administration. Inventories are now roughly in line with the five-year average for this time of year.
Despite those relatively healthy supply numbers, higher crude costs have continued to outweigh softer gasoline demand.
The national average has climbed steadily over the past month. AAA reported an average of about $4 per gallon one month ago, meaning prices have increased roughly 10 cents since late July.
The increase is even more pronounced compared with last summer, when motorists were paying about 97 cents less per gallon nationally.
Prices continue to vary significantly by state.
California had the nation’s highest average at $5.58 per gallon, followed by Hawaii at $5.42 and Washington at $5.24. Alaska, Nevada, Oregon, Idaho, Colorado, Arizona and Illinois rounded out AAA’s 10 most expensive markets.
Indiana had the nation’s lowest average at $3.56, followed by Texas at $3.64. Tennessee and Mississippi were both averaging $3.66 per gallon.
AAA also reported little movement in public electric vehicle charging costs. The national average remained at 42 cents per kilowatt-hour over the past week.
West Virginia had the highest public charging average at 52 cents per kilowatt-hour, while Kansas was lowest at 31 cents.
For gasoline motorists, however, the immediate question is what happens with crude oil.
Summer gasoline demand typically begins easing as the season winds down, a trend already visible in the latest federal data. Under normal conditions, weaker demand can help put downward pressure on pump prices.
But with crude oil remaining elevated, those seasonal dynamics haven’t been enough to reverse the current increase.
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