AAA: Gas Prices Increase Fueled by Crude Oil Gains

AAA Auto Club Group said this week gas prices have increased on 12 of the past 17 days and on each of the past six, making the national average for regular unleaded at $2.16 per gallon, which is four cents more than one week ago, but is two cents less than a month ago, 46 cents less than the same date last year, and the lowest price for this date since 2004.

Analysts say gas prices are likely to get more expensive as retail prices adjust to the increase in crude oil. Historically, retail gas prices don’t adjust to the oil price shift until a few weeks, though AAA forecasts they will remain at least relatively low for the remainder of the year.

The average price of gasoline is $2.09 in the Sunshine State. On Sunday, the state average rose for the fourth consecutive day in Florida. Regionally, the West Coast suffers from the highest prices in the nation as has been the case over the past decade. That largely the reason why these states have seen the most dramatic decrease in prices over the last week: Alaska (-89 cents), California (-84 cents), and Nevada (-77 cents).

On the flip side, Midwestern states were among the top-five seeing the largest increases: Indiana (+10 cents), Kentucky (+10 cents), Delaware (+9 cents), Michigan (+8 cents), and Ohio (+8 cents).

Oil prices are rising as Organization of the Petroleum Exporting Countries (OPEC) and other exporters are weighing the option to freeze output. The goal is exactly to lower production, increase demand and, as a result, crude oil and retail gas prices.

Meanwhile, U.S. crude oil inventories are at historically high levels for this time of year.

Quick Stats

• Gas prices in nine states are below $2.00 per gallon, three fewer than one week ago: South Carolina ($1.87), Alabama ($1.90), Mississippi ($1.93), Virginia ($1.95), Tennessee ($1.95), New Jersey ($1.96), Arkansas ($1.99), Texas ($1.99), and Louisiana ($1.997).
• West Coast drivers are still paying the highest prices for gasoline despite featuring five of the six states with week-over-week savings. This region includes the seven highest state averages and the four states where drivers are paying an average of more than $2.50: Hawaii ($2.69), California ($2.66), Washington ($2.58), and Alaska ($2.55).