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Thursday, 12 May 2022 08:56

Hitting the Gas: Pump Prices Surge as Oil Gets More Expensive

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Drivers are paying more at the pump---a lot more---as the cost of gasoline moves steadily higher.

From the end of April to May 9, the national average for a gallon of gasoline rose 20 cents to $4.32, a penny less than the record high set March 11.

 

The increase is primarily due to the high cost of crude oil, which was hovering near $100 a barrel and is now closing in on $110.

 

“With the cost of oil accounting for more than half of the pump price, more expensive oil means more expensive gasoline,” said Andrew Gross, AAA spokesperson. “These prices are creeping closer to those record high levels of early March.”

 

According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 2.2 million bbl to 228.6 million bbl in early May. However, gasoline demand increased slightly from 8.74 million b/d to 8.86 million b/d.

 

Increasing gas demand and rising oil prices have pushed pump prices higher. Pump prices will likely face upward pressure as oil prices remain above $105 per barrel.

 

For those in the market for a new ride, one way to end the pain at the pump may be to dump the pump. In the latest online AAA Car Guide, all category winners for 2022 are electric or electric hybrid vehicles. In addition to being highly fuel-efficient, the winners are loaded with the latest advanced driver assistance systems.

 

The AAA Car Guide also contains detailed information about AAA’s recent research on current automotive technologies and topics, such as driver assistance systems, gasoline quality, headlight effectiveness and much more.

 

Meanwhile, as of May 9, the national average for a gallon of gas is $4.32, which is 20 cents more than a month ago, and $1.36 more than a year ago.

 

The nation’s top 10 largest weekly increases: Michigan (+26 cents), New Jersey (+25 cents), Connecticut (+19 cents), Kentucky (+19 cents), Indiana (+19 cents), Rhode Island (+19 cents), Illinois (+18 cents), Washington, D.C. (+18 cents), Alabama (+18 cents) and Tennessee (+18 cents).

 

The nation’s top 10 most expensive markets: California ($5.82), Hawaii ($5.28), Nevada ($5.11), Washington ($4.83), Oregon ($4.81), Alaska ($4.73), Washington, D.C. ($4.69), Arizona ($4.66), Illinois ($4.59) and New York ($4.51).

 

Source: AAA