Gas Prices Continue to Soar

The national average price for a gallon of gasoline has gone up each of the past 27 days, reaching a current high of $3.38.

That price is 20 cents higher than when the 27-day streak began and six cents up from last week.

“With the U.S. economy slowly recovering from the depths of the pandemic, demand for gas is robust, but the supply is tight,” said Lloyd Albert, senior vice president of public affairs for AAA Northeast. “We haven’t seen prices this high since September of 2014.”

The Northeast was hit particularly hard this past week. Rhode Island (+11 cents), New York (+11 cents), New Hampshire (+10 cents), Connecticut (+10 cents), and New Jersey (+10 cents) were all among the 10 states with the largest weekly increases.

The recent rise in the pump price is due to higher demand coupled with a decline in stocks alongside elevated crude prices.

Global oil production is still below pre-pandemic levels. Total domestic gasoline stocks decreased by 5.4 million barrels to 217.7 million barrels last week, according to new data from the Energy Information Administration. However, gasoline demand increased from 9.19 million barrels per day to 9.63 million barrels per day. Since the cost of oil accounts for more than half of the pump price, consumers will be paying more as long as crude prices remain high.

This week’s national average of $3.38 is 20 cents more than a month ago and $1.22 more than a year ago, and 77 cents more than in 2019.

For more automotive news head to AAA.com.