Gas Prices Drop in Pa.; Demand Hits 4-Month Low

The average price of gasoline across Western Pennsylvania is a penny lower this week at $2.521 per gallon, according to AAA East Central’s Gas Price Report.

This week’s average prices

Western Pennsylvania Average – $2.521

Average price during the week of Oct. 19, 2020 – $2.533

Average price during the week of Oct. 28, 2019 – $2.792

The average price of unleaded self-serve gasoline in various areas:

$2.549 Altoona

$2.580 Beaver

$2.579 Bradford

$2.535 Brookville

$2.446 Butler

$2.481 Clarion

$2.528 DuBois

$2.574 Erie

$2.478 Greensburg

$2.599 Indiana

$2.323 Jeannette

$2.581 Kittanning

$2.585 Latrobe

$2.583 Meadville

$2.572 Mercer

$2.287 New Castle

$2.584 New Ken.

$2.599 Oil City

$2.508 Pittsburgh

$2.449 Sharon

$2.565 Uniontown

$2.599 Warren

$2.390 Washington

Trend Analysis

Gasoline demand has dropped significantly since the beginning of the month, down from 8.8 million barrels per day (b/d) to 8.2 million b/d, according to the latest Energy Information Administration (EIA) report.

This latest demand measurement is the lowest since mid-June. While the drop isn’t out of the ordinary for this time of year, it is a staggering 14 percent less than last October.

On the week, gasoline stocks increased to 227 million barrels, putting total supplies at a four-million-barrel surplus compared to this time last year.

Today’s national average is $2.16, which is the same price as last week, two cents cheaper than last month and 44 cents less than last year.

On the week, only five states saw gas prices increase: Ohio (+7 cents), Kentucky (+6 cents), Michigan (+5 cents), Indiana (+1 cent) and Illinois (+1 cent).

Of the states with cheaper weekly prices, 20 averages are 2 to 5 cents less than last Monday.

Hurricane season

It is a little more than a month until the end of the Atlantic hurricane season, which is proving to be one of the most active on record. A threat to the Gulf of Mexico – Tropical Storm Zeta – is forecast to become a hurricane by Wednesday.

The National Hurricane Center is warning the storm could bring storm surge, rainfall and high winds from central Louisiana to the western Florida Panhandle later this week.

It’s most likely that Zeta, similar to other tropical storms and hurricanes from earlier this season, will not have an effect on gas prices nationally due to the high level of gasoline inventory in the United States.

At the close of Friday’s formal trading session, West Texas Intermediate decreased by 79 cents to settle at $39.85. Domestic crude prices decreased in light of market concern about increasing coronavirus infections worldwide, which could lower crude demand.

The decrease in price occurred despite EIA’s weekly report showing that total domestic crude inventories dropped by 1 million barrels to 488.1 million barrels. If demand concerns continue this week, crude prices could decrease further.

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

About AAA East Central

AAA East Central is a not-for-profit association with 76 local offices in Kentucky, New York, Ohio, Pennsylvania and West Virginia serving 2.7 million members.