Gasoline demand remains strong despite record-high prices, analysts say

Americans are proving resilient to record high gas prices, and there isn’t much clear-cut relief in sight, an industry analyst said.

The imbalance between supply and demand likely will continue for most of the summer and could worsen with a major hurricane or refinery snag, Patrick De Haan, head of petroleum analysis at GasBuddy, said Monday.

“For the first time ever, last week saw the national average reach the $5-per-gallon mark, as nearly every one of the nation’s 50 states saw prices jump,” De Haan said. “For now, the upward momentum may slow down, but prices are still just one potential supply jolt away from heading even higher.

“Gasoline demand, while rising seasonally, is still well below previous records but remains impressive with prices in all states at record levels,” he said. “Should the rise in price finally start to slow demand, we could see some breathing room, but for now, it seems like Americans are proving resilient to record highs.”

AAA was reporting the national average Monday at $5.01, an all-time high and a level not seen since AAA started collecting pricing data in 2000. That’s up about 15 cents from last week, 58 cents more than a month ago and $1.94 more than a year ago.

Pennsylvania’s average is about $5.07, according to AAA. That’s 12 cents more than a week ago, 49 cents more than a month ago and $1.89 more than a year ago.

The cost of a barrel of oil is more than $120, nearly double last August’s price, as increased oil demand outpaces the tight global supply, AAA said. Domestic gasoline demand remains robust as the summer driving season ramps up.

“Based on the demand we’re seeing, it seems high prices have not really deterred drivers,” said Andrew Gross, AAA spokesperson. “If prices stay at or above $5, we may see people start to change their daily driving habits or lifestyle, but it hasn’t happened yet.”

According to GasBuddy, the average gasoline price in the Pittsburgh area increased by 18.2 cents per gallon in the past week to $5.04. That’s 56.3 cents more than a month ago and $1.81 more than a year ago.

Prices in the Pittsburgh area range from $4.79 to $5.99, a difference of $1.20 per gallon. Statewide, prices ranged from $4.73 to $6.49, a difference of $1.76 per gallon.

Neighboring areas and their current per-gallon gas prices as reported by GasBuddy:

• Akron: $5, up 20.9 cents from last week.

• Cleveland: $5.04, up 18.7 cents from last week.

• West Virginia: $4.90, up 27.1 cents from last week.