The U.S. Energy Information Administration (EIA) reported gas prices ticking higher again last week. Average regular gasoline prices are $1.31 a gallon higher than they were last year.
The average regular gasoline price of $3.41 a gallon is the highest since September 2014 and rose 2 cents a gallon from the previous week. Average diesel prices were flat from the previous week at $3.73 a gallon. Diesel prices are $1.35 a gallon higher than they were in the same week of 2020.
AAA stated the latest decision by OPEC and its oil-producing allies to maintain their planned gradual increase in output will not help lessen supply constraints. Any price relief, AAA stated, most likely will have to come from the demand side.
“Not everybody loves changing their household clocks for the end of Daylight Saving Time,” said Andrew Gross, AAA spokesperson. “But the shorter days could lead to lower demand for gas. Drivers may head straight home from work to avoid the darkness rather than tack on side trips for shopping or errands.”
According to EIA data, total domestic gasoline stocks decreased by 1.5 million barrels last week. However, gasoline demand rose slightly to 9.5 million barrels a day. The slight increase in demand has contributed to price increases, AAA stated, while elevated crude prices continue to put upward market pressure on pump prices.
