Today’s AAA National Average $3.867

Price as of 10/6/22

As Oil Prices Surge, Drivers Should Brace For More Pump Price Increases

As Oil Prices Surge, Drivers Should Brace For More Pump Price Increases

February 24,2022

Since Monday, the national average for a gallon of regular gasoline has increased by a penny to $3.54. According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 600,000 bbl to 246.5 million bbl last week. On the other hand, gasoline demand increased slightly from 8.57 million b/d to 8.66 million b/d. An increase in gas demand, alongside a reduction in total supply, is contributing to price increases, but increasing oil prices continue to play a leading role in pushing prices higher. Pump prices will likely continue to rise as crude prices continue to climb. 

At the close of Thursday’s formal trading session, WTI increased by 71 cents to settle at $92.81 after climbing above $100 per barrel earlier today. Crude prices surged after Russia launched its military invasion of Ukraine this morning. As the conflict escalates with more sanctions and retaliatory actions, the oil markets will likely respond by continuing to increase the price of crude oil to reflect more risk of disruption to tight global oil supplies. Additionally, EIA reported that total domestic crude stocks increased by 4.5 million bbl last week to 416 million bbl. The current stock level is approximately 10 percent lower than mid-February 2021, contributing to pressure on domestic crude prices.

Largest Weekly Increases

  • Since last Thursday, these 10 states have seen the largest increases in their averages: Ohio (+10 cents), North Carolina (+6 cents), South Carolina (+5 cents), California (+5 cents), Nevada (+4 cents), Kansas (+4 cents), Missouri (+4 cents), Hawaii (+4 cents), Alaska (+4 cents) and New Hampshire (+3 cents).