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Average
Kan. per-gallon price up 4 cents to $2.70; regional refinery maintenance
blamed.
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Topeka, Kan. - Despite a majority of states across America
experiencing falling or flat gas prices, Kansas was part of a regional trend
that saw prices at the pump rise over the past week. The average cost of a
gallon of regular gas in Kansas rose four cents this week to $2.70. Several
Great Lakes and Central states experienced increased gas prices due to
shutdowns of a half dozen refineries in the region because of maintenance
issues.
 “Generally this time of
year, we see gas prices that trend downward, and that is the case in much of
the country,” said Shawn Steward, AAA Kansas spokesman. “The refinery issues
in our part of the country just go to show you that retail fuel prices are always
evolving, sometimes impacted by unexpected factors and, overall, hard to
predict. Kansas does still fare very well, though, with gas prices 15 cents
below the national average and 12th cheapest in the nation.”
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Of
the 10 Kansas cities regularly highlighted by AAA Kansas (see chart below),
seven saw their gas prices increase, led by Salina (+10 cents), Garden City
(+6) and Wichita (+5). Hays, Kansas City, Kan. and Lawrence all saw a 1-cent
decline at the pumps.
According
to AAA Kansas, this week’s Kansas gas price extremes are:
HIGH: Kensington (Smith County)
– $3.01
LOW: Newton (Harvey County) –
$2.56
National Perspective
Motorists
in 32 states are welcoming cheaper or stable gas prices at the start of the
workweek. Today’s national gas price average is $2.85, which is the same
price as last Monday, one-cent more than last month and 27-cents more
expensive than this time last year.
The
latest Energy Information Administration (EIA) data reports that both U.S.
gasoline demand and stocks declined signaling supply and demand are in sync
post the summer. This is true for most regions, except in the Great Lakes and
Central region where prices are increasing due to maintenance at a handful of
refineries.
While
the national gas price has remained stable throughout September, the price of
crude oil started to increase in the last week.
“Crude
oil prices pushed past $70/bbl for three days last week,” said AAA Kansas’
Steward. “If they trend above this level for a sustained amount of time, we
could see a national trend reversal in pump prices meaning it may cost more
to fill-up as we get closer to the end of the year.”
Today’s
national gas price extremes:
High:
Hawaii – $3.78
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Low: Alabama and Mississippi – $2.53
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Gas Price Trends in Select Kansas
Cities
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Today
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Last Week
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Last Month
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Last
Year
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Change Over Last Year
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National
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$2.85
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$2.85
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$2.84
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$2.58
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10%
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Kansas
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$2.70
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$2.66
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$2.63
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$2.36
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14%
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Emporia
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$2.68
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$2.64
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$2.59
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$2.33
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15%
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Garden
City
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$2.68
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$2.62
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$2.62
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$2.33
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15%
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Hays
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$2.67
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$2.68
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$2.69
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$2.35
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14%
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KCK
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$2.75
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$2.76
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$2.68
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$2.43
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13%
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Lawrence
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$2.73
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$2.74
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$2.69
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$2.45
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11%
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Manhattan
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$2.69
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$2.68
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$2.66
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$2.47
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9%
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Pittsburg
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$2.67
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$2.66
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$2.67
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$2.32
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15%
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Salina
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$2.68
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$2.58
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$2.58
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$2.25
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19%
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Topeka
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$2.67
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$2.63
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$2.60
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$2.38
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12%
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Wichita
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$2.64
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$2.59
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$2.53
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$2.29
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14%
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Bordering states and rank in
lowest gas prices around the country
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State
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Current
Avg.
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Rank
Today
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Oklahoma
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$2.69
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11
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Missouri
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$2.61
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9
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Kansas
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$2.70
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12
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Colorado
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$2.93
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36
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Nebraska
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$2.79
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19
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Great Lakes and Central States
Trends
Unlike
most of the country, state gas price averages in the Great Lakes and Central
region continue to trend more expensive. States in the region with the
largest increase on the week: Kentucky (+6 cents), North Dakota (+5 cents),
Indiana (+5 cents), Iowa (+5 cents), Minnesota (+5 cents), Illinois (+4
cents), Nebraska (+4 cents), Wisconsin (+4 cents), and Kansas (+4 cents).
There was one outlier, Michigan (-5 cents), the only state to see prices drop
in the last seven days.
Overall,
the increase in gas prices can be attributed to planned and unplanned
maintenance at half a dozen refineries in the region. In fact, total
inventory in the Great Lakes and Central region sits at 52.3 million bbl
according to the EIA. Despite being on par with levels this time last year,
the 52 million mark is one of the lowest levels seen since Memorial Day
Weekend this year. The low inventory is a contributing factor for the
increasing gas prices.
Despite
similar year-over-year inventory levels, some motorists in the region are
paying in the neighborhood of 50-cents more to fill up compared to last
September: Indiana (+58 cents), Ohio (+53 cents), Illinois (+49 cents) and
Michigan (+46 cents).
Oil market dynamics
At
the close of Friday’s formal trading session on the NYMEX, the WTI increased
46 cents to settle at $70.78. Oil prices jumped higher last week after EIA's
report showed another decline in oil inventories, which now sit at 394.1
million bbl. The supply drop from the previous week's 396.2 million bbl has
put another spotlight on limited global supply as fall approaches.
U.S.-imposed sanctions on Iran and sharp reductions in economically stressed
Venezuela are two factors driving concerns that this fall there could be
major global crude supply challenges. If EIA's report this week shows
another decrease in domestic crude stocks, oil prices are likely to continue
their ascent amid continuing global supply concerns.
In
related news, OPEC and its partners who have worked to reduce their combined
total crude output since January 2017 met on September 23 in Algiers,
Algeria, to discuss compliance with their production agreement. After the
meeting, OPEC’s leaders confirmed that the cartel does not intend to increase
crude production in the near future to offset global supply concerns.
AAA Mobile App
Motorists
can find current gas prices along their route with the free AAA Mobile app
for iPhone, iPad and Android. The app can also be used to map a route, find
discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
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