Current:Home > MyGas prices are on the rise again. Here's where experts say they are going next. -Balance Wealth Academy
Gas prices are on the rise again. Here's where experts say they are going next.
Rekubit Exchange View
Date:2025-04-07 14:39:16
Budget-conscious motorists may want to fill up sooner rather than later, as prices at the pump are likely headed higher in the near term.
The approach of the peak driving season and the annual switch by refineries to more costly summer gasolines has driven up the national average for unleaded to $3.63, according to AAA.
Prices have been edging higher, with motorists on average paying six cents more per gallon than a week ago and 23 cents more this time last month. Still, the cost of filling up is in line with where motorists and their wallets stood a year ago, when a gallon of unleaded came to $3.61, AAA data shows.
"They are following a similar pattern to last year — maybe they rose a little quicker" due to the global conflicts roiling the oil patch, as well as a bump in demand due to people driving to prime viewing spots to see the solar eclipse, Andrew Gross of AAA told CBS MoneyWatch.
"This is a weird time because we have two wars going on, and the oil market is very wary of that," said Gross. "The oil market is very volatile and doesn't like the potential for bad news, or any worries that the war could widen to include oil-producing countries," he said.
The cost of gas proved to be a large factor in the surprise jump in inflation last month — a trend that is likely to persist in April, experts told CBS MoneyWatch. Paying to keep vehicles running and a roof over one's head accounted for more than half the March rise in the consumer price index, which rose 3.5% last month from a year ago. Gas prices increased 1.7% from February to March, the government data released on Wednesday showed.
Why are gas prices rising?
Underlying the higher costs of gas are routine factors including refinery maintenance, the switch to summer gasoline and rising demand.
"The West Coast is likely to see gas prices continue to jump, and in a week or so, will be joined by the mid-Atlantic and Northeast states as they wrap up the transition to summer gasoline," GasBuddy noted Monday in a blog post.
Domestic supply is also impacted as refineries take advantage of milder weather conditions to do necessary maintenance. "Refineries are so dangerous, you have to maintain these places, as there are a million things that can go wrong," said Gross. "They don't like extreme heat or cold, so spring and fall are a sweet spot for refineries and workers. You don't want anyone dealing with petrochemicals in 100 degrees."
Added to the mix are geopolitical factors, including the Russian-Ukraine war and Israel's war against Hamas in the Gaza Strip, which has spurred the price of oil to six-month highs.
Anytime crude is trading in the mid-80s it starts to put pressure on domestic gas prices, as oil is the main ingredient, according to AAA's Gross, who noted West Texas Intermediate's return Friday to above $87 a barrel. "That's an uncomfortable area for gasoline prices, as it accounts for 60% of what we pay at the pump," he said.
U.S. intelligence that Iran is preparing to retaliate for the Israeli attack early last week on an Iranian consulate in Syria is among the developments keeping the global commodities market on edge.
Defense Secretary Lloyd Austin has urged Ukraine against further attacks on Russian oil refineries, citing the risk to global energy markets, the Biden administration official told Congress on Wednesday.
Gas prices are averaging $5.44 a gallon in California and at or topping four bucks a gallon in seven states, including Alaska, Arizona, Hawaii, Illinois, Nevada, Oregon and Washington, according to AAA. The least expensive gas can be found in Arkansas, Colorado, Mississippi, where a gallon is averaging under $3.20.
- In:
- Gas Prices
Kate Gibson is a reporter for CBS MoneyWatch in New York.
veryGood! (83767)
Related
- Spooky or not? Some Choa Chu Kang residents say community garden resembles cemetery
- 65 kangaroos found dead in Australia, triggering criminal investigation: The worst thing I've seen
- Helicopter carrying 3 people crashes in the ocean off the Hawaiian island of Kauai
- What's the Jamestown Canyon virus, the virus found in some Maine mosquitoes?
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Triathlon
- ESPYS 2024 Red Carpet Fashion: See Every Look as the Stars Arrive
- How long should I walk my dog? And how often? Tips to keep your pup healthy.
- Ex-MLB player Sean Burroughs died of fentanyl overdose, medical examiner finds
- Travis Hunter, the 2
- Mother of the ‘miracle baby’ found crawling by a highway faces a murder charge in older son’s death
Ranking
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Hi Hi!
- Arrest Made in Cold Case Murder of Teenager Elena Lasswell 20 Years Later
- Yes, seaweed is good for you – but you shouldn't eat too much. Why?
- Thousands of Oregon hospital patients may have been exposed to infectious diseases
- DoorDash steps up driver ID checks after traffic safety complaints
- Kim Kardashian Shares Tip of Finger Broke Off During Accident More Painful Than Childbirth
- Arrest Made in Cold Case Murder of Teenager Elena Lasswell 20 Years Later
- Nevada Supreme Court is asked to step into Washoe County fray over certification of recount results
Recommendation
Jamie Foxx reps say actor was hit in face by a glass at birthday dinner, needed stitches
New York jury ready to start deliberations at Sen. Bob Menendez’s bribery trial
Seattle man sentenced to 9 years in federal prison for thousands of online threats
Kentucky drug crackdown yields 200 arrests in Operation Summer Heat
McKinsey to pay $650 million after advising opioid maker on how to 'turbocharge' sales
Ammo vending machines offer 24/7 access to bullets at some U.S. grocery stores
Horoscopes Today, July 11, 2024
New York jury ready to start deliberations at Sen. Bob Menendez’s bribery trial