Domestic gasoline demand plunged from 9.17 to 7.95 million barrels per day last week, according to the Energy Information Administration (EIA) — pulling pump prices down with it.
AAA East Central reported gas prices were three cents lower in Western Pennsylvania this week at $3.386 per gallon. In Bradford, the average was $3.614; in Brookville, $3.228; in DuBois, $3.232; in Erie, $3.280; and in Warren, $3.599.
Overall in Pennsylvania, the average was $3.35 per gallon Monday, according to GasBuddy’s survey of 5,269 stations in Pennsylvania.
Prices in Pennsylvania are 15.3 cents per gallon lower than a month ago and stand 29.6 cents per gallon lower than a year ago. The national average price of diesel has fallen 5.6 cents in the last week and stands at $3.90 per gallon.
According to GasBuddy price reports, the cheapest station in Pennsylvania was priced at $2.95 per gallon Sunday while the most expensive was $4.59 per gallon, a difference of $1.64 per gallon.
The trend in Pennsylvania followed the national trend in the last week, with the nationwide average price of gasoline down 3.8 cents per gallon, averaging $3.03 per gallon Monday. That’s 12.2 cents per gallon less than a month ago and 22 cents per gallon less than a year ago.
“Sluggish gasoline demand has led to the national average easing again, and brings back the potential for the national average to drift under $3 per gallon for the first time since 2021,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
“With a record rise in gasoline inventories last week as demand was anemic during the holidays, motorists have provided the catalyst for falling prices. If demand remains weak, gasoline prices could fall further. In addition, refinery issues in California have also eased, which will soon cause prices to decline in California, Nevada and Arizona, providing momentum for a possible run at a $2.99 national average. However, the better it gets now, the more bumpy and sharp the rise could be ahead of the spring, as prices could start their rise of 35 to 85 cents per gallon around mid-February.”
Additionally, the EIA reported that total domestic commercial crude inventories declined by 5.5 million barrels to 431.1 million barrels last week, while total domestic gasoline stocks increased substantially by 10.9 million barrels to 237 million barrels. Weak gas demand and increased supply have pushed pump prices lower, but rising oil prices limited price decreases.
At the close of Wednesday’s formal trading session, West Texas Intermediate increased by $2.32 to settle at $72.70.
Oil prices have increased amid heightened tensions in the Middle East. Shipping disruptions in the Red Sea and the potential for tighter sanctions on Iran have led to market concerns that the oil supply could tighten, and transportation costs could rise.
