BOSTON -- The national retail average price for gasoline has hit its highest point of 2016.
According to Boston-based GasBuddy, the national average jumped 8.3 cents per gallon (CPG) from the week prior to hit $2.224 per gallon at the start of this week. Averages rose in all 50 states week over week, with some metropolitan areas seeing an increase of 13 CPG or more. Nebraska’s Dakota-Dixon County had the biggest leap, up 30 CPG. The second- and third-biggest metro jumps were in Florida, with Orlando up 21 CPG and Tampa up 19 CPG.
Slowing global oil production is pressuring gasoline prices. In the United States, production fell to its lowest level since late 2014, and is off 7% from its summer 2015 peak.
On a state level, Florida had the biggest week-over-week increase, up 13.8 CPG, with Michigan (13.3 CPG), Ohio (12.8 CPG), Alaska (11.2 CPG) and Oregon (11 CPG) as runners up. The smallest increases were in Hawaii (0.1 CPG), Arizona (1 CPG), Kansas (2.4 CPG), Nevada (2.6 CPG) and California (3 CPG).
At the start of this week, nearly 78% of gas stations in the United States were selling a gallon of regular for more than $2 per gallon, according to GasBuddy. This compares to this same time last year, when all stations were selling gas for more than $2 per gallon, with more than 45% above $2.50 per gallon.
“Gasoline and oil prices have set new yearly highs as the imbalance of supply and demand may begin to shift as global oil production shows signs of slowing and gasoline demand is accelerating,” said Patrick DeHaan, a Chicago-based senior petroleum analyst for GasBuddy. “While oil inventories in the U.S. remain well-supplied for now, they are likely to start receding as refiners begin throttling up their operations after maintenance season.”
In the short term, gas prices might continue to rise until Memorial Day. But adequate oil inventories should provide a ceiling to gasoline and oil prices for this summer, according to GasBuddy. With refinery maintenance for the season finishing, gasoline production should rev up to meet up with demand.
Gasoline consumption is set to hit near-record or record levels this summer, while prices sink to their lowest level for the season in about a decade, he said.
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