Gas prices decline for 14th consecutive week

Published 12:32 pm Thursday, September 22, 2022

For the 14th consecutive week, the nation’s average gas price has fallen, down five cents from a week ago to $3.65 per gallon as of Tuesday afternoon, according to GasBuddy.com, a website and mobile app that tracks retail fuel prices.

It’s the same story in Kentucky, where the average price has dropped to $3.26 per gallon, down seven cents from last week. That’s 25 cents per gallon cheaper than a month ago, but is still 31 cents higher than one year ago at this time.

“With a 14th consecutive weekly decline, the national average price of gasoline has now surpassed 2018’s record decline, seeing its longest downward streak since 2015,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “While some states continue to see gas prices trend higher, the majority have continued to decline.”

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De Haan notes this week could see the end of the downward trend. “With some issues arising in Plains and Great Lakes states as the transition to winter gasoline begins, I think we have the best potential to see the weekly trend of falling prices snapped.  West Coast states also continue to see increases as unexpected refinery issues continue to percolate, preventing a downward move.  While gasoline could nudge higher, diesel prices should continue to ease after a much-needed jump in inventories last week.”

According to data released last week by the Energy Information Administration, U.S. oil inventories rose by 2.4 million barrels thanks to an 8.4-million-barrel drop in the Strategic Petroleum Reserve.   Commercial crude inventories now stand nearly 3% above year-ago levels but are down about 2% from the five-year average for this time of year. Domestic crude production was unchanged at 12.1 million barrels per day.

Gasoline inventories fell by 1.8 million barrels, with the largest drop in the Midwest, after BP’s Whiting, Indiana refinery experienced an electrical fire, causing the refinery to shut down to make repairs before reopening.  Distillate inventories finally saw a robust rebound, jumping 4.2 million barrels.  Implied gasoline demand continued to decline as cooler weather continues in parts of the nation, falling 233,000 barrels per day to 8.49 million bpd.

Check and report gas prices in your area by going to kentuckygasprices.com.