KENTUCKY — Gas prices in the commonwealth continue to creep up, despite a drop in demand since the July 4 holiday. According to AAA, gas prices are averaging 12 cents higher this week, at $3.26 a gallon.

What You Need To Know

  • According to AAA, gas prices have risen in Kentucky despite a big drop in demand since the July 4 holiday

  • The main culprit, the AAA said, is higher oil prices

  • The average price of a gallon of gas nationwide is $3.56

  • Despite falling demand, prices at the pump are likely to keep rising as long as oil prices remain high

The average price for the week of July 10 was $3.14 a gallon.

Here are the average prices for a gallon of unleaded gasoline in different parts of the state:

  • $3.26    Bowling Green
  • $3.23    Elizabethtown
  • $3.63    Louisville
  • $3.03    Owensboro
  • $3.14    Paducah

The national average of $3.56 is two cents more than a week ago and 97 cents lower than a year ago.

AAA said the main culprit is a higher price for oil, which moved from the upper $60s per barrel recently to the mid-$70s. Oil prices have increased partly because of rising market optimism that fewer interest rate hikes may be on the horizon.

According to new data from the Energy Information Administration, gas demand decreased significantly by almost 1 million barrels last week. Although lower gas demand typically pushes prices at the pump lower, rising oil prices have lifted them. If oil prices continue to rise, pump prices will probably follow suit.

To find the lowest gas prices in your area, you can check our gas trackers in Louisville, Lexington, Bowling Green and Northern Kentucky.

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