Gas prices are rising like the unwanted weeds of spring, but an industry analyst says some relief may be on the way.
“The national average price of gasoline has seen a continued but measured rise compared to last week, but the pace of increases has slowed slightly in the last few days,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “With government data showing a rise in refinery utilization last week, there may be some good news on the horizon for drivers.”
Average gasoline prices in Pennsylvania have fallen 0.9 cents per gallon in the last week, averaging $3.52 per gallon Monday, according to GasBuddy. Prices in Pennsylvania are 7.1 cents per gallon higher than a month ago and stand 9.8 cents per gallon lower than a year ago. The national average price of diesel has fallen 1.3 cents in the last week and stands at $4.02 per gallon.
According to GasBuddy price reports, the cheapest station in Pennsylvania was priced at $2.65 per gallon Sunday while the most expensive was $4.49 per gallon, a difference of $1.84 per gallon.
The national average price of gasoline has risen 6.2 cents per gallon in the last week, averaging $3.40 per gallon Monday. The national average is up 23 cents per gallon from a month ago and stands 4.5 cents per gallon lower than a year ago, according to GasBuddy.
Gas prices are two cents cheaper in Western Pennsylvania this week at $3.633 per gallon, according to AAA East Central’s Gas Price Report. In Bradford, the average price was $3.62 per gallon; Brookville, $3.602; in DuBois, $3.667; in Erie, $3.621; and in Warren, $3.698.
De Haan continued, “Much of the seasonal rise that happens this time of year is a culmination of refinery maintenance, the switch to summer gasoline, and rising demand. If refineries continue to boost output of products like gasoline, diesel and jet fuel, it could mean earlier-than-expected relief. However, the changeover is still in process, so while we’ll likely see the continuation of upward pressure on prices, improvement in output could slow that pressure down some.”
According to AAA, more expensive oil is resulting in higher gas prices as crude accounts for nearly 60% of the cost of a gallon of gas. The price of a barrel of oil is edging closer to $80, about $10 more per barrel than a few months ago. As spring approaches with longer days and better weather, gasoline demand typically rises, which also causes gas prices to increase.
According to new data from the Energy Information Administration (EIA), gas demand jumped from 8.47 to 9.01 million barrels per day last week. Meanwhile, total domestic gasoline stocks tightened by 4.5 million barrels to 239.7 million barrels. Growing gas demand, amid tighter supply, has pushed pump prices higher.
At the close of Wednesday’s formal trading session, West Texas Intermediate increased by 98 cents to settle at $79.13. Oil prices rose amid increased market optimism after U.S. Federal Reserve Chair Jerome Powell noted that interest rates are still expected to be cut later this year. Moreover, the EIA reported that total domestic commercial crude stocks increased by 1.3 million barrels to 448.5 million barrels last week. Last week, the Organization of Petroleum Exporting Countries and its allies, including Russia, collectively known as OPEC+, extended their agreement to reduce production by 2.2 million barrels per day into the second quarter of 2024.
