Monticello Gas Prices are Highest in the Local Area

AAA: Gas Prices Drop in Western Kentucky; Crude Prices Continue to Climb

Gas prices in West Central Kentucky began the week five cents lower this week at $3.00, according to AAA East Central’s Gas Price Report.

This week’s average prices: Western Central KY Average                   $3.00

Average price during the week of October 11, 2021                              $3.05

Average price during the week of October 19, 2020                              $1.89

 

According to the Triple-A website Friday morning here are the average prices of unleaded self-serve gasoline in our local area:

Monticello $3.19

Somerset $3.10

Albany $3.14

Whitley City $3.13

Russell Springs $3.01

Trend Analysis:

This week’s national average for a gallon of gasoline hit $3.32 which is five cents higher than last week. The primary driver of this surge remains the cost of crude oil, which is now closing daily above $80 a barrel. In August, the price of crude was in the low $60s per barrel.

According to new data from the Energy Information Administration (EIA), last week’s total domestic gasoline supply fell by 2 million barrels to 223.1 million barrels. Gasoline demand also fell from 9.43 million barrels per day to 9.19 million barrels per day, but the agency calculates it is still some 610,000 barrels per day above last year. Typically, softening demand should result in some easing of pump prices, but the higher cost for crude is keeping prices elevated. With more expensive oil prices, pump prices will follow suit because the cost of crude oil accounts for more than half of the price of each gallon of gas.

 

At the close of last Friday’s formal trading session, West Texas Intermediate increased by 97 cents to settle at $82.28. Crude prices increased last week despite the EIA reporting that total domestic crude inventories increased by 6.1 million barrels to 427 million barrels last week. The current storage level is nearly 13 percent lower than the level at this same time last year. Given supply concerns, the market continues to bolster prices higher.