As oil companies rake in record profits, here’s how Kentucky drivers can save on gas
The average cost of gas in Kentucky is down compared to where it was a week ago, and prices could fall further after President Joe Biden announced an “unprecedented” release of the nation’s Strategic Petroleum Reserve.
Here’s a breakdown of where the average cost per gallon of gas currently stands in Kentucky and Lexington, tips from AAA about how to save fuel and a look into the record-breaking profits oil companies are reaping.
What’s the current average price for gas in Kentucky?
According to AAA, the current average cost per gallon of regular fuel in Kentucky is $3.954, as of Friday.
That’s down from the average reported one week ago – $3.979 per gallon – and has dipped even from the average AAA reported Thursday, which was $3.965 per gallon.
Though the average is still hovering near $4 per gallon for drivers in Kentucky, the state average is below the national average, which stood at $4.215 per gallon Friday.
The current average cost per gallon in Kentucky is also below the historic high – although not by much – at $4.089 per gallon of regular fuel. That was in July of 2008.
In Fayette County, the average stood at $3.976 per gallon Friday, according to AAA.
The metro average for Lexington Friday was $3.966 per gallon of regular fuel, down from the previous day’s metro average of $3.972 per gallon.
The highest recorded average price for regular fuel in Lexington was $4.125 per gallon back in 2008.
What’s the latest action Biden is taking to bring down gas prices?
Thursday, Biden revealed he was signing off on the release of 1 million barrels of oil per day over the next six months – more than 180 million barrels altogether – to bring down costs for drivers at the gas pump.
These barrels are being taken from the U.S. Strategic Petroleum Reserve, which is stored at four facilities along the Gulf Coast, two sites in Louisiana and two in Texas, in a network of artificial caverns. According to the U.S. Department of Energy, “a typical cavern holds 10 million barrels and is cylindrical in shape with a diameter of 200 feet and a height of 2,500 feet.”
The release is unprecedented, with Biden calling it “by far the largest release from our national reserve in our history.” The release represents about 5% of all U.S. demand.
The president also warned oil companies they could face fines if they don’t pump on land they’ve leashed from the federal government.
“Right now, the oil and gas industry is sitting on nearly 9,000 unused but approved permits for production on federal lands. There are more than [12] million unused acres they have a right to — to pump on,” Biden said.
In response, the Center for Biological Diversity said Biden’s moves “will deepen our dependence on fossil fuels and open the floodgates to more oil and gas extraction when we should be going in the opposite direction,” according to a statement it gave to Democracy Now!
Biden also accused U.S. oil companies of gouging consumers at the gas pump: “For U.S. oil companies that are recording their largest profits in years, they have a choice. One, they can put those profits to productive use by producing more oil, restarting idle wells, or producing on the sites they already are leasing — giving the American people a break by passing some of the savings on to their customers and lowering the price at the pump.”
A new report by Oil Change International projects U.S. oil and gas companies could rake in as much as $126 billion in windfall profits this year.
That said, there are some steps you can take to save money at the gas pump.
How to save money at the gas pump
The website GasBuddy uses crowd-sourced data to offer users a look at the cheapest places to fill up locally.
As of Friday, the cheapest gas station in Lexington appeared to be at the Lex Express at 176 West New Circle Road, which was charging $3.85 per gallon of regular fuel.
AAA has also rounded up a list of tips and good habits you can practice to optimize your gas consumption. That means slowing down and driving the speed limit, avoiding sudden starts and stops and idling as little as possible.
“If your car will be stopped for more than 60 seconds, shut off the engine to save fuel. Many newer cars have automatic engine stop-start systems that do this,” AAA said.