Gas prices continue to climb and reach an 8-month high. What’s driving the surge?
Drivers nationwide are facing higher prices at the pump.
It’s the sharpest spike in months, and experts say prices could continue to climb.
“We’re at the highest average that we’ve seen since April, and we’re just two cents away from getting to the highest level we’ve seen since November (2022),” Patrick De Haan, head of petroleum analysis at GasBuddy, told McClatchy News.
The national average for regular unleaded gas hit $3.71 on Thursday, July 27 — a 3-cent hike from the day before, according to AAA. In a week’s time, gas prices have climbed 13 cents per gallon.
While prices are the highest they’ve been in eight months, they’re still far below the more than $5 gallon seen at the pumps in June 2022.
Why are gas prices going up?
So what’s driving the latest surge? De Haan said the issue is two-fold.
Production cuts by the Organization of Petroleum Exporting Countries (OPEC) have caused a spike in global oil prices, according to De Haan. However, recent economic data has quelled fears of a recession and provided more “bullishness” in regard to oil, he said.
A heat wave that’s baking much of the U.S. has also been blamed for disruptions. Excessive heat warnings were issued in more than a dozen states as of Thursday, according to the National Weather Service.
“Refineries are outdoors exposed to the elements, and when they get hit ... with 110- to 115-degree heat, you’re going to have issues,” De Haan said. “Even a momentary power outage can kick a refinery offline for several days.”
Demand for gas is up as travelers hit the road for last-minute summer trips. However, U.S. gasoline inventory is down, hitting its lowest July levels since 2015, De Haan said.
The extreme heat and rise in oil prices have only exacerbated things, causing a sudden spike at the gas pump.
Drivers have seen “about a 13-cent-per-gallon jump nationally in the last week, and we might go up another 5 to 10 cents,” De Haan said.
This story was originally published July 27, 2023 at 4:06 PM.