AAA: Gas prices up 13 cents nationally with higher oil prices, constrained refinery production
Economy, U.S.

AAA: Gas prices up 13 cents nationally with higher oil prices, constrained refinery production

Chris Graham
gas
(© Daniel Thornberg – stock.adobe.com)

Gas prices are surging with the surge in heat across the United States, jumping 13 cents, to $3.71 per gallon, in the past week, according to data from AAA.

The primary cause appears to be the oil price, which has marched nearly $4 higher in the past few days to hover near $80 per barrel. As oil accounts for almost 50 percent of the cost of a gallon of gas, higher oil prices usually mean higher pump prices.

“Gas demand, meaning people fueling up, remains tepid. It’s lower now than at this time last year and in 2021,” AAA Mid-Atlantic spokesperson Morgan Dean said. “But while the heat may be keeping some folks home, it also suppresses refinery production, according to experts. Constrained supplies and a higher cost of oil are tipping the balance toward rising pump prices for now.”

According to new data from the Energy Information Administration, gas demand rose slightly from 8.86 to 8.94 million b/d last week. Meanwhile, total domestic gasoline stocks dipped from 218.4 to 217.6 million bbl.

With supplies tight, if demand should spike, pump prices will follow suit.

Today’s national average of $3.71 is 15 cents more than a month ago but 59 cents less than a year ago.

Virginia’s average ($3.52) is up 11 cents in a week, up 21 cents in a month, but down 56 cents from this day a year ago.

Chris Graham

Chris Graham

Chris Graham is the founder and editor of Augusta Free Press. A 1994 alum of the University of Virginia, Chris is the author and co-author of seven books, including Poverty of Imagination, a memoir published in 2019, and Team of Destiny: Inside Virginia Basketball’s Run to the 2019 National Championship, and The Worst Wrestling Pay-Per-View Ever, published in 2018. For his commentaries on news, sports and politics, go to his YouTube page, youtube.com/chrisgrahamAFP.