Price of gas keeps more at home

The past year has seen gas prices with more ups and downs than the roller-coaster collection at King’s Dominion. Unfortunately, the roller coaster is going uphill as the summer travel season approaches.

Even with steadily climbing gas prices, Teresa Hedrick was still taking to the road over the Memorial Day weekend.

“We’ve got a little camper at Snead’s Ferry in North Carolina, which we’re going to,” she said, while pumping gas on Thursday. “When we planned on going, prices weren’t so high. I told my husband I wish we’d filled up yesterday.”

Her husband has a 24-foot boat at Snead’s Ferry, and she said he hasn’t been taking it out because of the price of gas, but if he can find people who want to go out and split the cost of gas, he will take it out this weekend.

Anthony Fitzgerald, also filling up, said he had wanted to go to New York over the weekend, but decided when the gas prices went up again to visit a brother in Charlottesville instead.

“It’s better than last year but rising,” he said. “It looks like it’s going up every day.”

He’s right.

Last week marked the second consecutive week motorists saw double-digit increases in gas prices, according to a May 17 news release by AAA Mid-Atlantic, a trend which is likely to continue this week as prices in Virginia have gone up 6 cents since Sunday.

On Thursday, the average price of a gallon of gas in Danville was $2.26, compared to $2.12 last week, $1.90 last month, $1.83 six months ago and $3.70 a year ago, according to AAA Price Finder, which records gas prices through credit card use at most gas stations in the area.

The lowest price for a gallon of gas during the past year was $1.52 on Dec. 31. The lowest national average was $1.62 the day before.

Still leaving town

Somewhat positive global economic news, along with the traditional spring and summer price bump has contributed to the jump in gasoline prices, AAA said.

“Motorists will undoubtedly see gas prices continue their uptick through the Memorial Day weekend,” Martha M. Meade, spokesperson for AAA Mid-Atlantic, said in the release. “However, despite increases at the pump, 32.4 million people, or a 1.5 percent increase over last year’s dismal travel season, are expected to take to the highways this Memorial Day weekend for the official start of the summer driving season.

“After months of cabin fever, deep travel discounts and cheaper gas will lure many Americans out and about for the upcoming holiday weekend.”

Better than last year

Even though gas prices are higher than a month ago, they are still 44 percent below the record price set nationally on July 11 last year of $4.11.

Crude oil prices are remaining at six-month highs, but the price is relatively stable, closing at $62.04 per barrel on Wednesday, Windy VanCuren, AAA spokesperson, said Thursday.

“Oil prices have been tempered in recent months by both growing supplies and numerous reports indicating continued depressed domestic and global energy demand,” she said.

U.S. crude oil inventories were at 375 million barrels in May, their highest levels since 1990, and consumer demand is at a 14-year low, contributing to oil prices remaining in check, the release said.

The American Petroleum Institute reports that total U.S. petroleum demand fell 3.6 percent in April from the year before and the period from January to April saw the lowest levels since 1998 due to the weak economy.

“The overarching issue keeping oil and gasoline price in check is the global recession,” VanCuren said. “In the U.S., despite continued optimism that the domestic recession may be finally waning, several key indicators of economic activity — unemployment rates and housing and retail sales data — continue to remind investors and consumers of the frailty of the global and domestic economy.”

A glimmer of good news amid the higher prices is that AAA does not expect the price of gasoline to average more than $2.50 per gallon this summer. In fact, the Energy Information Administration predicts the price of gas will average $2.23 from April to September, which is $1.60 lower than the same period in 2008, and does not see another spike in gas prices to match last summer’s.

“While the climb in oil and gasoline prices will not be cheered by consumers,” VanCuren said, “it does indicate a certain degree of optimism in the future of the economy and relative comfort with the current retail price of gasoline.”

Contact Elzey at or (434) 791-7991.