Gas Prices Inch Up Despite Lower Demand and Rising Stocks

Gasoline prices in the U.S. increased by three cents this week, with the national average reaching $3.13 per gallon, according to AAA. The modest rise comes despite lower oil costs, declining gasoline demand, and growing domestic gasoline stocks.

AAA spokesperson Andrew Gross attributed the price increase to winter-related disruptions. “The culprit for the pop in prices is likely old man Winter,” Gross said. “It’s a little harder to distribute gasoline in bad weather, and refineries don’t operate well in freezing temperatures either.”

According to the Energy Information Administration (EIA), gasoline demand fell significantly from 8.32 million barrels per day (b/d) to 8.08 million b/d. Meanwhile, domestic gasoline stocks increased from 243.6 million barrels to 245.9 million barrels. Despite the rise in inventory, gasoline production saw a decline, averaging 9.2 million b/d last week.

Compared to a month ago, today’s national average price is nine cents higher. It is also five cents higher than the same time last year.

West Texas Intermediate (WTI) crude oil prices fell by 39 cents to settle at $75.44 per barrel on Wednesday. Crude oil inventories dropped by 1 million barrels, leaving total U.S. stockpiles at 411.7 million barrels, which is approximately 6% below the five-year average for this time of year, according to the EIA.

The highest gasoline prices in the nation were reported in Hawaii ($4.54), California ($4.44), and Washington ($3.93). Meanwhile, Mississippi ($2.68), Oklahoma ($2.71), and Texas ($2.74) had the lowest averages.

Top 10 Most Expensive Gasoline Markets

1. Hawaii: $4.54
2. California: $4.44
3. Washington: $3.93
4. Nevada: $3.66
5. Oregon: $3.54
6. Pennsylvania: $3.38
7. Maryland: $3.35
8. Alaska: $3.32
9. Illinois: $3.29
10. Washington, D.C.: $3.28

Top 10 Least Expensive Gasoline Markets

1. Mississippi: $2.68
2. Oklahoma: $2.71
3. Texas: $2.74
4. Louisiana: $2.76
5. Arkansas: $2.77
6. Tennessee: $2.78
7. Kentucky: $2.78
8. Alabama: $2.81
9. Kansas: $2.81
10. Missouri: $2.83

While gasoline prices edged higher, the national average cost for public EV charging held steady at 34 cents per kilowatt hour. States like Kansas (22 cents), Nebraska (25 cents), and Missouri (25 cents) offered the least expensive public charging options. Hawaii (53 cents) remained the priciest state for EV charging.

Top 10 Least Expensive States for Public Charging (Per Kilowatt Hour)

1. Kansas: 22 cents
2. Nebraska: 25 cents
3. Missouri: 25 cents
4. Maryland: 26 cents
5. Delaware: 27 cents
6. Texas: 28 cents
7. Utah: 29 cents
8. Michigan: 29 cents
9. North Dakota: 30 cents
10. Iowa: 31 cents

Top 10 Most Expensive States for Public Charging (Per Kilowatt Hour)

1. Hawaii: 53 cents
2. Montana: 45 cents
3. West Virginia: 45 cents
4. Idaho: 42 cents
5. Tennessee: 42 cents
6. Arkansas: 42 cents
7. New Hampshire: 42 cents
8. Kentucky: 41 cents
9. South Carolina: 41 cents
10. Alaska: 41 cents

Despite easing oil costs and lackluster gasoline demand, winter weather challenges may continue to impact refinery operations and distribution networks, keeping gas prices steady or slightly elevated in the coming weeks.

This article, "Gas Prices Inch Up Despite Lower Demand and Rising Stocks" was first published on Small Business Trends

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