Lori L. Mavrigian

Managing Editor

Since joining Modern Tire Dealer in 1979, Lori Mavrigian has held several key positions leading to her current title as managing editor. In addition to handling the day-to-day operations of magazine production, Lori writes features, contributes photography and is in charge of several of the magazines departments. She also works with the magazine's National Advisory Council for the exclusive Ludwig Report surveys. She earned a B.A. in Mass Media-Communications from the University of Akron.

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Bucking past trends, gas prices and miles traveled are both on the rise

By: Lori L. Mavrigian

According to the AAA, “The current national retail average price for a gallon of self-serve regular gasoline is $3.04, up six cents from a week ago, 19 cents from a month ago, and 44 cents from a year ago. This marked the first time that the U.S. has ever nationally spent Christmas Eve with a $3 or greater per gallon price at the pump.”

“Crude prices burst through the $90 per-barrel price before settling at a two-year high of $91.51 on December 23^rd,” AAA notes. “High crude prices, buoyed by increasing global demand, have dragged retail gasoline prices higher, this week seeing a $3 national average price at the pump. The U.S. had last seen this high an average just before Halloween in 2008.”

High demand also is credited for the higher prices. “With holiday travel likely to keep demand at this level in this week’s report, the stage is set for the first three consecutive week period of 20-million barrel per-day consumption since August 2008,” the AAA says.

In my area, this week’s average price was $3.086. The average price during the week of Dec. 21, 2010, was $2.984. And the average price during the week of Dec. 29, 2009, was $2.649, according to the AAA.

Driving around today I noticed the cost of self-serve gas was $3.09 to $3.15 a gallon. It makes me wonder what the New Year will bring.

The good news is that “a higher domestic demand for crude is seen as an indicator of positive strength in the U.S. economy,” says the AAA.

“While this news may reflect some level of optimism for the economy, the upward pressure on prices is not necessarily good news for consumers. At the same time, motorists do appear to be taking to the roads in increasing numbers.”

The AAA reports the Federal Highway Administration released statistics showing both month-on-month and year-on-year increases in vehicle miles traveled.

So while gas prices are on the rise, consumers seem to be taking it in stride this time around, instead of putting fewer miles on their tires as they did during the recent recession. Let’s hope they can maintain a positive mentality going forward – continuing to drive smart (fuel-economy-wise), yet still driving.

Related Topics: Gas prices, Miles traveled