Current:Home > reviewsGas prices are on the rise again. Here's where experts say they are going next. -GrowthInsight
Gas prices are on the rise again. Here's where experts say they are going next.
View
Date:2025-04-18 05:59:19
Budget-conscious motorists may want to fill up sooner rather than later, as prices at the pump are likely headed higher in the near term.
The approach of the peak driving season and the annual switch by refineries to more costly summer gasolines has driven up the national average for unleaded to $3.63, according to AAA.
Prices have been edging higher, with motorists on average paying six cents more per gallon than a week ago and 23 cents more this time last month. Still, the cost of filling up is in line with where motorists and their wallets stood a year ago, when a gallon of unleaded came to $3.61, AAA data shows.
"They are following a similar pattern to last year — maybe they rose a little quicker" due to the global conflicts roiling the oil patch, as well as a bump in demand due to people driving to prime viewing spots to see the solar eclipse, Andrew Gross of AAA told CBS MoneyWatch.
"This is a weird time because we have two wars going on, and the oil market is very wary of that," said Gross. "The oil market is very volatile and doesn't like the potential for bad news, or any worries that the war could widen to include oil-producing countries," he said.
The cost of gas proved to be a large factor in the surprise jump in inflation last month — a trend that is likely to persist in April, experts told CBS MoneyWatch. Paying to keep vehicles running and a roof over one's head accounted for more than half the March rise in the consumer price index, which rose 3.5% last month from a year ago. Gas prices increased 1.7% from February to March, the government data released on Wednesday showed.
Why are gas prices rising?
Underlying the higher costs of gas are routine factors including refinery maintenance, the switch to summer gasoline and rising demand.
"The West Coast is likely to see gas prices continue to jump, and in a week or so, will be joined by the mid-Atlantic and Northeast states as they wrap up the transition to summer gasoline," GasBuddy noted Monday in a blog post.
Domestic supply is also impacted as refineries take advantage of milder weather conditions to do necessary maintenance. "Refineries are so dangerous, you have to maintain these places, as there are a million things that can go wrong," said Gross. "They don't like extreme heat or cold, so spring and fall are a sweet spot for refineries and workers. You don't want anyone dealing with petrochemicals in 100 degrees."
Added to the mix are geopolitical factors, including the Russian-Ukraine war and Israel's war against Hamas in the Gaza Strip, which has spurred the price of oil to six-month highs.
Anytime crude is trading in the mid-80s it starts to put pressure on domestic gas prices, as oil is the main ingredient, according to AAA's Gross, who noted West Texas Intermediate's return Friday to above $87 a barrel. "That's an uncomfortable area for gasoline prices, as it accounts for 60% of what we pay at the pump," he said.
U.S. intelligence that Iran is preparing to retaliate for the Israeli attack early last week on an Iranian consulate in Syria is among the developments keeping the global commodities market on edge.
Defense Secretary Lloyd Austin has urged Ukraine against further attacks on Russian oil refineries, citing the risk to global energy markets, the Biden administration official told Congress on Wednesday.
Gas prices are averaging $5.44 a gallon in California and at or topping four bucks a gallon in seven states, including Alaska, Arizona, Hawaii, Illinois, Nevada, Oregon and Washington, according to AAA. The least expensive gas can be found in Arkansas, Colorado, Mississippi, where a gallon is averaging under $3.20.
- In:
- Gas Prices
Kate Gibson is a reporter for CBS MoneyWatch in New York.
veryGood! (526)
Related
- Travis Hunter, the 2
- These Moments Between Justin Bieber and Pregnant Hailey Bieber Prove They’ll Never Ever, Ever Be Apart
- Arizona State University scholar on leave after confrontation with woman at pro-Israel rally
- Wisconsin woman who argued she legally killed sex trafficker pleads guilty to homicide
- Macy's says employee who allegedly hid $150 million in expenses had no major 'impact'
- Senate scrambles to pass bill improving air safety and service for travelers as deadline nears
- Search ongoing for 2 missing skiers 'trapped' in avalanche near Salt Lake City, sheriff says
- Looking for Unbeatable Home Deals? Run To Pottery Barn’s Sale, Where You’ll Score up to 60% Off
- Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
- Why am I lonely? Lack of social connections hurts Americans' mental health.
Ranking
- Trump issues order to ban transgender troops from serving openly in the military
- Hospitals across US disrupted after cyberattack targets healthcare network Ascencion
- MLB after one quarter: Can Shohei Ohtani and others maintain historic paces?
- Murdered cyclist Mo Wilson's parents sue convicted killer Kaitlin Armstrong for wrongful death
- EU countries double down on a halt to Syrian asylum claims but will not yet send people back
- Bucks’ Patrick Beverley suspended 4 games without pay for actions in season-ending loss to Pacers
- Opportunity for Financial Innovation: The Rise of DAF Finance Institute
- Ethan Hawke explains how Maya Hawke's high-school English class inspired their new movie
Recommendation
Trump suggestion that Egypt, Jordan absorb Palestinians from Gaza draws rejections, confusion
Why some health experts are making the switch from coffee to cocoa powder
Lululemon's We Made Too Much Has a $228 Jacket for $99, The Fan-Fave Groove Pant & More Major Scores
Murdered cyclist Mo Wilson's parents sue convicted killer Kaitlin Armstrong for wrongful death
Moving abroad can be expensive: These 5 countries will 'pay' you to move there
Former aide and consultant close to U.S. Rep. Cuellar plead guilty and agree to aid investigation
Family of 10-Year-Old Survivor in Quadruple Murder-Suicide Praise His Resilience
Here’s what to know if you are traveling abroad with your dog