Rising Oil Prices and Demand Cause Gas Prices to Jump
Gas prices at a Chevron station in Monterey Park, California on October 5, 2023.Photo: Frederic J. Brown (Getty Images)
After months of gas prices decreasing every single day, we are starting to see weeks of those lower prices being wiped out by a new upswing in cost. Across the country, the average price of a gallon of gas is now $3.92 per gallon, according to AAA.
The price of a gallon of regular gasoline is now 21 cents higher than it was a month ago, and it’s 65 cents higher than it was at the same time last year.
A big reason for that is the tried-and-true idea of supply and demand. More people are driving than they were before, and there’s less oil to go around.
AAA reports that OPEC+ recently announced that the group of oil-producing countries were going to cut their output by 2 million barrels per day. That, in turn, led to the price of a barrel of oil going about $90 for the first time in a number of weeks.
“Gas prices in California are finally cooling off, as more refineries come back online after undergoing maintenance and the switch to cheaper winter blends takes effect,” Andrew Gross, AAA spokesperson, said. “High West Coast prices have played a major role in the recent climb in the national average for gas. Reversing this trend may help take some pressure off of pump prices.”
According to new data from the Energy Information Administration (EIA), gas demand increased nationally from 8.83 million b/d to 9.47 million b/d last week. Total domestic gasoline stocks decreased significantly by 4.7 million bbl to 207.5 million bbl. High gasoline demand, amid tight supply, has led to higher pump prices nationwide.
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There are now ten states where gas prices have increased 20 cents or more per gallon in just the last week. They’re spattered all over the country, so it’s tough to point to just one reason behind this jump.
With that, let’s take a look at the highest and lowest prices across the country.
Here are the highest average gas prices in the country in order of highest price for a gallon regular:
California – $6.29 Regular | $6.52 Mid | $6.66 (spooky) Premium | $6.60 DieselAlaska – $5.55 Regular | $5.74 Mid | $5.94 Premium | $5.31 DieselOregon – $5.52 Regular | $5.73 Mid | $5.93 Premium | $5.64 DieselNevada – $5.40 Regular | $5.66 Mid | $5.85 Premium | $5.52 DieselWashington – $5.39 Regular | $5.58 Mid | $5.78 Premium | $5.63 Diesel
Here is the lowest average price of gasoline in the country in order of lowest price per gallon of regular:
Georgia – $3.25 Regular | $3.63 Mid | $4.00 Premium | $4.71 DieselMississippi – $3.30 Regular | $3.64 Mid | $4.00 Premium | $4.52 DieselTexas – $3.30 Regular | $3.65 Mid | $3.99 Premium | $4.66 DieselFlorida – $3.34 Regular | $3.73 Mid | $4.04 Premium | $4.94 DieselLouisiana – $3.36 Regular | $3.74 Mid | $4.10 Premium | $4.76 Diesel
See you’se guys later.
