Gas Prices Rising

Gem State average price now just eight cents higher than the national average

BOISE – COVID-19 restrictions continue to have a profound impact on the price of gas.  According to AAA, the demand for fuel has dropped four weeks in a row, and currently sits at its lowest level since May.  In response, Idaho gas prices fell by another two cents.

Meanwhile, the U.S. average increased by half a penny due to the higher price of crude oil.  The market continues to believe that better days are ahead, with speculators expressing optimism that a vaccine will diminish the effects of the pandemic and restore business and travel activity.  Idaho’s average price for regular is now just eight cents higher than the national average.

Today, drivers in the Gem State are paying an average of $2.24 per gallon, which is seven cents less than a month ago and 60 cents less than a year ago.  The current U.S. average is $2.16, which is three cents more than a month ago, but 40 cents less than a year ago.  Idaho dropped another place in the national ranking and is currently 13th in the country for most expensive fuel.

“Gasoline demand is down 14 percent year-over-year, and we are seeing prices that reflect the increased restrictions that are being instituted in various states,” says AAA Idaho public affairs director Matthew Conde.  “But the good news is that those who are still out and about are seeing some nice savings when they fill up.”

Drivers can review the AAA COVID-19 Travel Restrictions map for the latest information.

The West Texas Intermediate benchmark for crude oil is currently priced at $46 per barrel, which is $14 cheaper than a year ago.  The price of crude oil accounts for anywhere from 50-60% of the price of finished gasoline.  As COVID-19 vaccines are distributed and prove effective, the crude market could become more bullish in the weeks and months ahead, which in turn could cause gas prices to increase.

Here’s a selection of Idaho gas prices as of 12/14/20:

 

Boise - $2.24

Coeur d’Alene - $2.10

Franklin - $2.27

Idaho Falls - $2.18

Lewiston - $2.36

Pocatello - $2.25

Twin Falls - $2.30

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