Gas Demand Sluggish Due To Weak Economy

From the East Penn Region, of AAA East Central, an affiliate of AAA and the Pennsylvania AAA Federation:

According to AAA’s Fuel Gauge Report, crude oil prices declined in yesterday’s trading, driven by increasing fears of global recession and the possible downgrade of sovereign European countries, as well as a stronger U.S. dollar.

While West Texas Intermediate oil prices have increased substantially over the last several months, the price of gasoline at the pump has decreased. WTI prices have increased more than $20 per barrel from $75.67 to begin October to $96.92 yesterday, as the gap between WTI and Brent crude - the traditional global benchmark product - has closed dramatically. During this same period, gasoline demand has remained sluggish due to high prices and a weak economy, leading to a lower price at the pump. 

The current national average retail price for a gallon of self-serve regular gasoline is $3.340 down 11.6 cents from last month. In Pennsylvania, today’s average price of self-serve gasoline is $3.410 down nine cents from a month ago and 41.7 cents higher than a year ago. In the Lehigh Valley, the average price for self- serve regular unleaded gasoline is $3.378 per gallon. That is 8.9 cents lower than a month ago and 41.2 cents higher than a year ago. In the Philadelphia market, the average price for self- serve regular unleaded gasoline is $3.418 per gallon. That is 10 cents lower than a month ago and 39 cents higher than a year ago. 

11/22/2011

WEEK AGO

YEAR AGO

NATIONAL

3.340

3.411

2.872

PENNSYLVANIA

3.410

3.454

2.993

ALLENTOWN/BETHLEHEM/EASTON

3.378

3.423

2.966

PHILADELPHIA 

3.418

3.460

3.028

As North America’s largest motoring and leisure travel organization, AAA provides more than 52 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. 

The East Penn Region, of AAA East Central, an affiliate of AAA and the Pennsylvania AAA Federation, has more than 270,000 members throughout its service area which takes in all of Lehigh County, and part of Bucks, Carbon, Chester, Montgomery and Northampton Counties.