A surge in the cost of crude oil is continuing to drive the cost of gasoline up, AAA reported, rising a nickel over the past week to hit a national average of $3.32.
The current national average is 13 cents a gallon more than a month ago, and a $1.16 more than a year ago. The $3.32 national average is also 67 cents a gallon more than in 2019.
Crude oil is now closing daily above $80 a barrel. In August, the same product was near $60 per barrel.
“Compared to the price of gas a year ago, it now costs consumers about $17 more to fill up their vehicles,” said Andrew Gross, AAA spokesperson. “That is the cost of a large pizza with toppings. And unfortunately, it does not look like drivers will be finding relief at the pump any time soon.”
New data supplied by the Energy Information Administration shows last week’s total domestic gasoline supply fell by 2 million barrels to 223.1 million barrels. Gasoline demand also fell from 9.43 million barrels per day to 9.19 million. The agency calculates it is still some 610,000 barrels per day above last year.
The higher crude cost is blocking the demand softening that ordinarily would be a relief for consumers, AAA stated. Pump prices are forecasted to follow oil prices as they rise, as the cost of crude oil amounts to more than half the price of each gallon of gas.
The International Energy Agency has predicted a more robust oil demand, especially for heating oil this winter, which will keep crude oil prices elevated.
Southern and eastern states topped the list of the nation’s 10 largest weekly increases, led by Ohio with a 15-cent gain, Alabama with a 13-cent increase and Connecticut with an 11-cent surge. Rounding out the list is Virginia, with a 10-cent rise, and Rhode Island, with a 9-cent increase.
However, the U.S.’s most expensive markets remain in tourist regions and cities, led by California, which has an average price of $4.49 per gallon, and Hawaii, with an average price of $4.18 per gallon. Rounding out the top 10 are Washington, D.C., at $3.54, and Colorado, with a reported average price of $3.52 per gallon.
