PRICES AT THE PUMP
Since Thanksgiving, the price of gas has risen nationwide.
Where It’s Heading
& Why It Matters
What To Know:
- In the last month, the national gas price average rose by almost 40 cents.
- As of the date of this publishing (March 18th) the national average is up 78 cents since Thanksgiving, according to AAA.
- Gas prices have increased since Thanksgiving but have consistently risen for the last 10 weeks.
- Gas prices vary depending on where you live, mostly because of the way different states tax gasoline sales.
“As Americans turn optimistic on COVID-19 recovery, we’ve been seeing insatiable demand for gasoline, which continues to recover far faster than oil production.”
Patrick De Haan, head of petroleum analysis for GasBuddy, says large oil companies had to lay off employees and shutter some facilities in the last year due to the pandemic. Companies cannot adjust as quickly as consumers. Lower supply + higher demand = higher prices.
Something to Consider:
Variables factoring into pricing:
- Demand – The price for oil is increasing as the economy is heating up again.
- Historic winter storm in Texas – Supply is down as demand is increasing; bad weather impacted 1/5 of all U.S. refineries.
- Spring Switch – Refineries have to blend more efficient, less volatile, higher-priced fuel in spring/summer due to EPA regs.
One More Thing:
“The heating up of what’s commonly understood as a proxy war between Iran and Saudi Arabia in Yemen is just adding to the bullish oil price fever.”
Oil market analyst Louise Dickson, Rystad Energy. Tensions in the Middle East add to higher oil prices, which in turn impact prices of gasoline and other petroleum byproducts.
Bottom Line: If you're paying more for gas, that means less money for other items. Higher gas prices, creeping up right as Americans are receiving stimulus checks, may slow the economic recovery. AAA says gas prices may reach $4 a gallon by this summer. GasBuddy.com helps you find the cheapest gas – check it out on our source page.
Fuel Insights from Gas Buddy: CLICK HERE
by Jenna Lee,