The national average pump price for a gallon of gas maintained its recent surge, rising seven cents over the past week to hit $3.79. Tight supply and increased demand as more drivers fuel up are the main culprits.
“The regional differences in gas prices are stark at the moment, with prices on the West Coast hitting $6 a gallon and higher, while Texas and Gulf Coast states have prices dipping below $3 in some areas.” said Andrew Gross, AAA spokesperson. “At least six California refineries are undergoing maintenance, and there is limited pipeline supply to the West Coast from locations east of the Rockies.”
To offset surging prices, California officials will allow the sale of less expensive winter blend gasoline a month ahead of schedule. It is unknown how much of an impact this will have on prices. Meanwhile, gas prices in the upper Midwest have risen since a deadly refinery fire on September 20 in Toledo, Ohio, which closed the plant. According to the latest reports, the 160,000 barrel-per-day BP-Husky Toledo refinery could be down for months.
According to data from the Energy Information Administration (EIA), gas demand increased nationally from 8.32 million b/d to 8.83 million b/d last week. Total domestic gasoline stocks decreased by 2.4 million bbl to 212.2 million bbl. If demand remains robust as supply tightens, drivers should brace for rising pump prices through the weekend.
The average price for a gallon of gas in California was $6.41 on Tuesday, according to AAA, roughly $0.03 short of the record set in June. In Los Angeles County, the average price for a gallon of gas was $6.46 compared to the national average of $3.81.
Many energy experts are quick to blame California’s rapid increase in gas prices at the “incredible number of refinery disruptions”. And while it’s normal for refineries to do maintenance this time of the year, combining that with the unplanned shutdowns has caused a “massive crimp on gasoline supply.”
California Governor Gavin Newsom blamed oil companies for the current predicament and posted a video on Twitter, where he said that oil companies continue to hike up prices and “provide no explanation” as to why.
Furthermore, Newsom has asked state lawmakers to introduce a windfall tax that would cap oil companies’ profits, tax at a higher rate any earnings above that ceiling, and return the money to taxpayers via rebates. He also directed the state’s air regulators to allow refineries to begin producing winter-blend gasoline immediately instead of waiting after Oct. 31 as required by law.
Mississippi recorded the lowest gas prices at $3.06 a gallon surpassing last month’s lowest state Texas, who recorded the second lowest gas price in the nation with $3.09.
Today’s national average of $3.79 is the same as a month ago but 60 cents more than a year ago.
The nation’s top 10 largest weekly increases:
California (+59 cents)
Alaska (+54 cents)
Oregon (+43 cents)
Washington (+38 cents)
Arizona (+38 cents)
Nevada (+38 cents)
Michigan (+19 cents)
Illinois (+19 cents)
Wisconsin (+17 cents)
Indiana (+16 cents)
The nation’s top 10 most expensive markets:
California ($6.37)
Nevada ($5.49)
Oregon ($5.42)
Alaska ($5.32)
Washington ($5.29)
Hawaii ($5.21)
Arizona ($4.49)
Idaho ($4.42)
Michigan ($4.16)
Illinois ($4.16)
The nation’s top 10 least expensive markets:
Mississippi ($3.06)
Texas ($3.09)
Louisiana ($3.10)
Georgia ($3.16)
Tennessee ($3.16)
Florida ($3.18)
Alabama ($3.18)
Arkansas ($3.21)
South Carolina ($3.25)
Connecticut ($3.27)
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