WASHINGTON and BOSTON -- The national average price for regular gasoline is close to topping $2 per gallon for the first time in 2016.
This week opened with an average of $1.98 per gallon, which was the highest point since January, said AAA, Washington. It was also 5 cents per gallon (CPG) higher than a week ago, and 27 CPG above a month ago. Increased demand and decreased production at refineries focused on maintenance helped provide the pressure.
The highest state average for the second consecutive week was in California at $2.68 per gallon, followed by Hawaii ($2.55), Nevada ($2.32), Washington ($2.24) and Alaska ($2.22). New Jersey had the lowest average—$1.73—and it was the only state below the $1.75 price point, according to AAA.
Forty-five states and Washington, D.C., saw their average rise over the past week, with the biggest gains in Arizona (up 19 CPG), Nevada (12 CPG) and Florida (11 CPG). Meanwhile, averages fell in five states week over week, with the biggest discounts in Missouri (down 4 CPG), Illinois (down 3 CPG), Minnesota (down 2 CPG), Ohio (down 1 CPG) and Indiana (down less than 1 CPG).
On a month-over-month basis, most states saw an increase of 5 CPG or more in their average regular gasoline price. In 43 states and Washington, D.C., prices rose by double digits, said AAA. In 26 states, this meant an increase of 25 CPG or more. The biggest monthly increases happened in Nebraska (up 41 CPG), Kentucky (40 CPG), and Kansas and Iowa, both up 38 CPG, which were all impacted by refinery production cuts.
But on a year-over-year basis, drivers are still paying 44 CPG less. All 50 states and Washington, D.C., continued to enjoy a savings of more than 25 CPG. Thirteen states’ averages were off 50 CPG or more, led by the western states of Alaska (down 71 CPG), Oregon (down 67 CPG), and California and Utah, both down 60 CPG.
The national average gasoline price had risen 29 CPG since it hit a bottom on February 15 at $1.696 per gallon, which was the lowest average since 2008, said Boston-based GasBuddy. This increase of 29 CPG falls just below GasBuddy forecasts, which projected a 35- to 70-CPG increase from the bottom to a spring or early summer high.
GasBuddy said it expects the national average to soon rise above $2 per gallon. As of Monday, 100% of gas stations in the United States were selling regular gasoline at more than $1.50 per gallon, compared to 78% above that price a month ago.
“With the U.S. average price of gas closing in on the $2 level, a price not seen since late December, it reflects a real paradox,” said Gregg Laskoski, senior petroleum analyst at GasBuddy. “We see simultaneously both a stark increase—25 CPG in the past few weeks—and a reminder of how much we’re still saving.”
Despite the expected seasonal increase in gas prices and a 54% jump in oil prices, the national average was still 45 CPG below this same time a year ago, according to GasBuddy figures.
(March 21, 2016)
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