Gas prices have hit a steady state, providing a rare moment of predictability for small business owners who count on transportation costs. As of February 20, 2025, the national average for a gallon of gas remains unchanged at $3.16, a price that offers a slight increase of 4 cents compared to a month ago but marks an 11-cent decrease from a year ago, according to the latest data from the Energy Information Administration (EIA).
For many small businesses, fuel expenses are a significant factor in operational budgets, particularly for those reliant on delivery services, transportation, or fieldwork. With gas prices holding steady, these businesses can plan better for the weeks ahead. Predictability at the pump helps owners stabilize pricing strategies, manage profit margins, and reduce financial uncertainty.
In terms of electricity prices for electric vehicle (EV) charging, the current national average stands at 34 cents per kilowatt hour, remaining constant over the past week. As the push for greener transportation alternatives continues, understanding these costs becomes increasingly relevant for small businesses considering the switch to electric fleet vehicles.
Recent EIA reports reveal shifts in gasoline demand, which decreased from 8.57 million barrels per day (b/d) last week to 8.23 million b/d. Additionally, the total domestic gasoline supply has slightly dropped from 248.1 million barrels to 247.9 million barrels. Gasoline production also witnessed a decline, averaging 9.2 million b/d. These changes illustrate the complexities of oil market dynamics, which small business owners should monitor closely.
Taking a closer look at regional pricing, the disparities can be quite significant. For instance, businesses operating in states like California ($4.84) and Hawaii ($4.55) face much higher fuel costs compared to their counterparts in Mississippi ($2.67) and Louisiana ($2.75). Understanding local fuel prices is crucial for small businesses, especially those engaged in regional operations, as it can directly influence competitive pricing and market positioning.
Moreover, the top 10 most expensive states for EV charging mirror some of the highest gas prices. Hawaii tops the list with charging costs at 55 cents per kilowatt hour, which could impact small businesses considering EV adoption. Conversely, states like Kansas (22 cents) and Nebraska (25 cents) offer more attractive pricing, a potential incentive for small business owners in those regions to transition to electric vehicles.
A potential challenge arises from the volatility of oil and energy markets. While current prices are steady, any abrupt changes could affect budgeting and forecasting. Small business owners should remain vigilant, planning for potential fluctuations in energy costs. It may be wise to incorporate fuel purchase strategies, such as bulk buying or fuel management programs, to mitigate the impact of sudden price increases.
As the market evolves, tools like the AAA TripTik Travel Planner allow drivers to find current gas and electric charging prices along their routes, enabling small business owners to make more informed decisions about travel and logistics. The ability to plan journeys based on fuel costs can lead to significant savings, especially for businesses with extensive travel needs.
While the current stability in fuel prices presents an opportunity for small businesses to strategize and plan without the looming concern of sudden hikes, keeping an eye on market trends remains essential. By understanding regional variations in fuel prices and considering the transition to electric vehicles, small business owners can optimize their operations and potentially reduce costs in the long term.
For further details on current gas and electricity prices, you can visit the original press release at AAA Gas Prices.
Image Via Gas Price
