AAA: Kentucky Gas Prices Rise Ahead of the Holidays

Gas prices in West Central Kentucky are seven cents higher this week at $2.037, according to AAA East Central’s Gas Price Report.

This week’s average prices: Western Central KY Average $2.037
Average price during the week of December 14, 2020 $1.961
Average price during the week of December 23, 2019 $2.390

Average prices of unleaded self-serve gasoline in various areas:

$2.090 Bowling Green
$1.859 Elizabethtown
$2.242 Louisville
$1.968 Owensboro
$2.026 Paducah

Trend Analysis:

Pump prices across the country are rising as the end of 2020 approaches. Since Monday, the national gas price average has jumped six cents to $2.22. While not the most expensive price of the year, this is the highest national average since mid-September. Today’s national average is 11 cents more expensive than last month, but 33 cents cheaper than last year.

Two factors have largely contributed to driving up the price at the pump: rising crude oil prices and tightening supply. The domestic price of crude (WTI) has been steadily rising since November, with prices topping $49/barrel. Prices have not been this expensive since February, before stay-at-home guidance was introduced across the country.

Energy Information Administration data show U.S. gasoline supply levels sit at 238.7 million barrels, which is 1.6 million barrels more than a year ago. While a healthy supply, the year-over-year surplus has been much larger through the last nine months. While the combination of tightening supply and rising crude prices would typically drive prices up even higher, it is expected that the extremely low demand for gasoline should offset those major increases in the weeks ahead.

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

AAA East Central is a not-for-profit association with 73 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.