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10/12/2021

Prices at the Pump Are Highest Since October 2014

Rising crude oil prices and a slight uptick in demand push the national average to $3.27.
Rising gas prices

WASHINGTON, D.C. — After rising 7 cents on the week to $3.27 per gallon, the national average gas price reached its highest point since October 2014.

Surging crude oil prices, which recently rose above $80 per barrel before dropping slightly, are the primary factor, along with a slight increase in gasoline demand, reported AAA.

Crude oil rose in price after OPEC+, representing the Organization of the Petroleum Exporting Countries (OPEC), Russia and their allies, opted to maintain a 400,000 barrels per day production increase instead of producing 800,000 barrels per day in November.

"The key driver for this recent rise in the price of gas is crude oil, which typically accounts for between 50 percent and 60 percent of the price at the pump," said AAA Spokesperson Andrew Gross. "And last week's decision by OPEC and its oil-producing allies to not increase production further only exacerbated the upward momentum for crude oil prices."

An Oct. 1 oil spill in a key pipeline supplying parts of the Southeast also led to tightened regional supplies.

The current national average of $3.27 is 10 cents more than one month ago, $1.09 more than one year ago, and 63 cents more than pre-pandemic in 2019.

The top 10 largest weekly increases occurred in Washington, D.C. (+17 cents), Kentucky (+15 cents), Indiana (+15 cents), Florida (+13 cents), Michigan (+12 cents), Alabama (+12 cents), Tennessee (+12 cents), South Carolina (+11 cents), Illinois (+10 cents), and Delaware (+10 cents).

The current 10 most expensive markets are California ($4.44 per gallon), Hawaii ($4.12), Nevada ($3.87), Washington ($3.85), Oregon ($3.75), Idaho ($3.72), Alaska ($3.71), Utah ($3.70), Colorado ($3.52), and Wyoming ($3.51).