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Gas prices spike amid high oil prices: AAA

Demand remains relatively low

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Some states saw gas prices more than double the national average, AAA said. (iStock)

The national average price for gas increased to $3.58 for the week ending July 20, inching three cents higher from the previous week, according to the latest report by AAA.

"The primary culprit is a higher oil price, which has recently increased to the mid-$70s per barrel," AAA said in its report.

Gas demand increased slightly from 8.76 to 8.86 million barrels a day last week, according to data from the Energy Information Administration (EIA). At the same time, total domestic gasoline stocks decreased from 219.5 to 218.4 million barrels.

"With supplies tight, if demand climbs, pump prices will follow suit," AAA said in its report.

But gas demand has remained low overall, AAA said.

"Gas demand barely budged from last week, yet compared to this time in 2022, it is higher nationwide except for the Gulf Coast, Texas and New Mexico," AAA spokesperson Andrew Gross said. "Some industry experts speculate that scorching temps in that region are keeping people off the road."

If you’re looking to keep your overall car payments low, it could help to switch auto insurance providers to reduce your monthly premiums. Visit Credible to get your personalized quote in minutes. 

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Average gas prices more than doubled in some states

While the nation has experienced a rise in average gas prices since last week, some places saw significant increases. Here are the states that had the sharpest spikes in gas prices, according to AAA’s report. 

  • South Carolina (+15 cents)
  • Utah (+10 cents)
  • Tennessee (+7 cents)
  • Virginia (+6 cents)
  • Pennsylvania (+5 cents)
  • Louisiana (+5 cents)
  • Georgia (+5 cents)
  • Alabama (+5 cents)
  • Oklahoma (+5 cents)
  • Indiana (+5 cents)

In addition, these were the country's top 10 most expensive markets. 

  • Washington ($4.92)
  • California ($4.89)
  • Hawaii ($4.68)
  • Oregon ($4.58)
  • Alaska ($4.30)
  • Nevada ($4.22)
  • Utah ($3.93)
  • Idaho ($3.89)
  • Illinois ($3.83)
  • Colorado ($3.82)

The national average gas price of $3.58 is a cent more than a month ago, but 88 cents less than a year ago, AAA said.

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Satisfaction with car insurance providers takes a plunge 

Auto insurance customer satisfaction fell to a 20-year low in 2022, according to a study by J.D. Power. In fact, customer satisfaction with car insurance providers decreased to 822, a drop from 834 the year prior, J.D. Power said. The organization rates satisfaction levels on a 1,000 point scale.

The main driver of this decline was an overall increase in auto insurance costs, according to the report. 

"Overall customer satisfaction with auto insurers has plummeted this year, as insurers and drivers come face to face with the realities of the economy," Mark Garrett, J.D. Power director of insurance intelligence, said in a statement. 

In addition, 40% of drivers said they’re stressed about auto insurance affordability, according to a Policygenius study.

"That stress is leading many Americans to consider switching car insurance companies," Policygenius said in its report. "A small number of drivers have even considered driving uninsured because of high rates, with 17% of drivers age 18 to 34 saying they’ve actually done so within the past year."

But consumers can lower car insurance costs by working with the right provider. 

"Even though rates are going up in general, being smart about the way you shop can help save you money," Angelé Doakes, a licensed auto insurance expert and operations manager at Policygenius, said in a statement.

If you’re looking to save money on your car costs, you could consider changing your auto insurance provider to get a lower monthly rate. You could visit Credible to speak with an insurance expert and get your questions answered.

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