Gas Prices Continue to Rise: National Average at $3.49/Gallon
By Gas prices nationally have been steadily rising for the past five weeks, with the national average at $3.49/gallon on Monday.[0] This is 33.3 cents per gallon higher than a month ago and 14.1 cents per gallon higher than a year ago.[1] Diesel prices have also risen 5.4 cents in the last week, to an average of $4.65/gallon.[2]
According to Patrick De Haan, head of petroleum analysis at GasBuddy, “There appears to be little good news on the gas price front, with prices unlikely to turn around any time soon.”[3] He attributes this continued rise in prices to refinery utilization not having fully recovered from December's cold weather, and refinery maintenance season just around the corner.[4] Since the surge in prices last spring, many refineries that had planned maintenance have deferred maintenance until 2023, kicking the can to this year and potentially creating similar challenges to meet demand.[3] This is compounded by the European Union cutting off refined products from Russia starting February 5.[2]
The cheapest gas station in the country is priced at $2.98 a gallon, while the most expensive is $3.99. Fuel prices in the Twin Cities are 42.9 cents per gallon more expensive than they were a month ago and 24.8 cents per gallon more than they were a year ago.[2] In Michigan, the average price for a gallon of regular gasoline is $3.14, which is a 14-cent increase from last week and 13 cents higher than a year ago, according to AAA.[5] Gas prices in California have risen to an average of $4.55 per gallon, a 10 cent increase from the previous week's average of $4.44.[6] In the Miami area, the cheapest gas was $2.99 a gallon on Monday, and the highest price was $4.99, with an average price of $3.59, up 16.2 cents a gallon from last week.
AAA attributes the rise in gas prices to multiple factors, including warmer than normal weather across the country, which has compelled more drivers to get behind the wheel in January, increasing demand. The Cleveland Fed’s Inflation Nowcasting model is also pointing to a 0.6% month-over-month increase for the Consumer Price Index for January.[7] GasBuddy warned of $4 gas by March, which is a far cry from the record of $5.02 a gallon last June.[8]
0. “Drivers and Local Transit Resigned to Higher Gas Prices” 9&10 News, 30 Jan. 2023, https://www.9and10news.com/2023/01/30/drivers-and-local-transit-resigned-to-higher-gas-prices
1. “Average gas price up 15 cents in parts of Hampton Roads” 13newsnow.com WVEC, 30 Jan. 2023, https://www.13newsnow.com/article/traffic/gas-prices/average-gas-price-up-15-cents-parts-of-hampton-roads/291-f1f0e575-9c75-480c-ae9f-7ab612cfa9ec
2. “Gas prices continue spike in Twin Cities, no relief in sight” KARE11.com, 30 Jan. 2023, https://www.kare11.com/article/money/consumer/gas-prices-continue-spike-in-twin-cities-no-relief-in-sight/89-65b1afce-b9fb-4857-85de-aba800106754
3. “Weekly gas averages show prices are still increasing” Northern Star Online, 30 Jan. 2023, https://northernstar.info/102744/news/weekly-gas-averages-shows-prices-are-still-continuously-increasing/
4. “Kansas City gas prices jump 48 cents in a month” KCTV 5, 30 Jan. 2023, https://www.kctv5.com/2023/01/30/kansas-city-gas-prices-jump-48-cents-month
5. “Fuel demand remains high; Killeen-area gas prices continue to climb” The Killeen Daily Herald, 28 Jan. 2023, https://kdhnews.com/news/local/fuel-demand-remains-high-killeen-area-gas-prices-continue-to-climb/article_9a4f4c36-9ea1-11ed-afa4-d793e18d92bc.html
6. “California gas prices up more than 10 cents in one week. Here’s how long spike may last” Sacramento Bee, 30 Jan. 2023, https://www.sacbee.com/news/local/transportation/article271823392.html
7. “Gas prices jump to $3.50 a gallon in January, pose threat to Fed's inflation fight” MarketWatch, 26 Jan. 2023, https://www.marketwatch.com/story/gas-prices-jump-to-3-50-a-gallon-in-january-pose-threat-to-feds-inflation-fight-11674763852
8. “Why gas prices are surging this month” KTVZ, 27 Jan. 2023, https://ktvz.com/money/cnn-business-consumer/2023/01/27/gas-prices-have-surged-40-cents-in-a-month/
