The national average price for a gallon of gas has risen by four cents to $3.10 over the past week, fueled by oil prices hovering around $80 per barrel. This increase comes despite low domestic gasoline demand, which dropped to 8.32 million barrels per day (b/d) last week, according to AAA.
“Domestic gasoline demand is low, so why are pump prices creeping higher? Look at the cost of oil,” said Andrew Gross, AAA spokesperson. He cited strong winter heating fuel demand and new U.S. sanctions against Russia’s energy sector as key drivers of the increase. “Oil costs account for 56% of what you pay at the pump. So, more expensive oil leads to more expensive gas. But that said, there are still 26 states with averages below $3 a gallon for now.”
Oil prices closed at $80.04 per barrel on Wednesday, up $2.54 from the previous session. Crude oil inventories also declined by 2 million barrels to 412.7 million barrels, 6% below the five-year average for this time of year.
The current national average for a gallon of gas is three cents higher than a year ago and eight cents higher than last month. Total domestic gasoline stocks increased to 243.6 million barrels, with production averaging 9.3 million barrels daily last week.
Meanwhile, the national average cost of electricity at public EV charging stations remains unchanged at 34 cents per kilowatt hour.
Top Gasoline and Electricity Price Markets
AAA provided a breakdown of the highest and lowest gasoline and public EV charging prices nationwide:
Most Expensive Gasoline Markets
- Hawaii: $4.54
- California: $4.41
- Washington: $3.90
- Nevada: $3.66
- Oregon: $3.50
Least Expensive Gasoline Markets
- Mississippi: $2.66
- Texas: $2.68
- Oklahoma: $2.70
- Arkansas: $2.71
- Louisiana: $2.76
Least Expensive Public Charging States
- Kansas: 22 cents per kilowatt hour
- Nebraska: 25 cents
- Missouri: 25 cents
- Delaware: 27 cents
- Texas: 28 cents
Most Expensive Public Charging States
- Hawaii: 51 cents per kilowatt hour
- Montana: 45 cents
- West Virginia: 45 cents
- Idaho: 42 cents
- New Hampshire: 42 cents
With oil prices continuing to influence gas costs, AAA suggests that further fluctuations could depend on global energy demand and market conditions.
Image: AAA
