Attention all budget-conscious drivers! It's time to consider filling up your gas tanks sooner rather than later, as prices at the pump are expected to rise in the coming weeks.
As we approach the peak driving season and refineries make the annual switch to more expensive summer gasoline blends, the national average for unleaded gas has climbed to $3.63, as reported by AAA.
Gas prices have been gradually increasing, with the average motorist now paying six cents more per gallon compared to last week, and 23 cents more than this time last month. Despite these hikes, the current cost of filling up remains on par with prices from a year ago, when a gallon of unleaded gas was priced at $3.61, according to AAA data.
The rising cost of gas played a significant role in the unexpected surge in inflation last month, according to experts cited by CBS MoneyWatch. This trend is expected to continue into April, as expenses related to maintaining vehicles and housing accounted for over half of the March increase in the consumer price index, which rose by 3.5% compared to the previous year. Government data released on Wednesday revealed that gas prices rose by 1.7% from February to March.
Reasons Behind the Surge in Gas Prices
The increase in gas prices can be attributed to a variety of factors, including routine issues such as refinery maintenance, the transition to summer gasoline, and a rise in demand. However, the situation is further complicated by geopolitical tensions, such as the conflict between Russia and Ukraine and Israel's battle with Hamas in the Gaza Strip, which have pushed oil prices to their highest levels in six months.
Recent U.S. intelligence suggests that Iran is preparing to retaliate following an Israeli attack on an Iranian consulate in Syria. These developments are contributing to the uncertainty in the global commodities market.
Defense Secretary Lloyd Austin has cautioned Ukraine against further assaults on Russian oil refineries, highlighting the potential risk to the global energy markets. This warning was conveyed to Congress by a Biden administration official on Wednesday.
"The West Coast is expected to experience continued increases in gas prices, with the mid-Atlantic and Northeastern states set to follow suit as they complete the transition to summer gasoline," GasBuddy pointed out in a recent blog post.
Currently, gas prices are averaging $5.41 per gallon in California and have surpassed $4 in several states, including Alaska, Hawaii, Illinois, Nevada, Oregon, and Washington, according to AAA. On the other hand, the most affordable gas can be found in Arkansas, Colorado, and Mississippi, where prices are averaging under $3.20 per gallon.
