With a nickel increase on the week, the national gas price average has reached $2.77, which is a 31-cent jump in the last month. Every state average has climbed by double-digits since February resulting in 1 in 10 gas stations with pump prices that are $3/gallon or more.
Pump prices are increasing as refinery utilization is at an all-time low and crude oil prices (WTI) surged by more than $2/bbl to $66/bbl on Friday, the highest price in nearly two years. The jump in crude followed the Organization of the Petroleum Exporting Countries’ and their allies’, collectively known as OPEC+, surprise decision to minimally increase production in April.
“With crude oil prices back on the rise, we could see the national average climb towards $2.90 this spring with some relief by early summer,” said Jeanette McGee, AAA spokesperson. “The last time we saw the national average flirt with $3 was nearly three years ago in May 2018. At that time, crude was averaging about $71 per barrel.”
The Energy Information Administration’s (EIA) report for the week ending February 26 shows refinery capacity at 56%, which is the lowest rate recorded by the agency. It is also 12 percentage points below last week and 18 percentage points lower than a year ago. EIA data also points to a decrease in gasoline stocks down to 243.4 million bbl, which is 3.5% below levels at the end of February 2020.
With refinery utilization at a record low, gasoline supplies tightening, demand modestly increasing and crude prices on the rise, cheap prices are in the rear view mirror for the immediate future.
Today’s national average is nearly 40 cents more expensive compared to a year ago.
The average price for a gallon of gas in California is currently $3.75.
53 comments
Thanks Joe
All you people who wanted free stuff from Biden…this will hurt you the most.
High energy costs effect the poor the most. It’s like a regressive tax.
Enjoy it! It’s what you asked for!
Well said!!!
Biden has nothing to do with the price of gas or oil.
Thank the refineries for cutting production and claiming there is a shortage.
Do you blame the Dow Jones being so high on the new administration as well?
I think most people know Biden has nothing to do with anything!
Energy dependency on foreign countries, cutting production of gas, tanking stock market, 401k losses really stacking up now..Riots in the streets everyday already, wait till george floyd hits. Your president can’t even talk or walk, let alone think for himself while the border kids in cages has expanded 500%. Now we buy foreign oil to make plexiglass and masks (not gas) but we can’t have plastic straws.
Lol THIS is joe biden’s America. You voted for this.
Remember guys and girls oil is also used to make Yoga Pants.
Someone has overdosed on the blue anon koolaid. “A wonderland” Mental illness is definitely on the rise
Wonderland? Local governments, including plenty of blue ones, had a hand in handling the virus. CA and NY were both considered shining stars in their approaches by the media. Those same governments shut down the economy which was doing quite well before covid. The magical vaccine that the VP candidate swore she wouldn’t take due to who was in office came from the boogeyman you’re trying to pin it all on. Social unrest has been around for much longer, and calling one side nazis and one man literally hitler does nothing to bring the unity and healing the other side is claiming to want. And if seeing the media admit there was no russiagate still makes you want to push that point, I got nothing for you. There is BS on both sides and responsibility that needs to be taken by each.
Sounds like the perfect time for California to pass another gas tax increase…(you know they want to)!
Pyrrhus, I usually let your “self-censored” rants go without reply, but do yourself a favor and do a bit of research, because with the exception that there were a half a million dead (though not due to President Trump), not one of those ridiculous items you stated were even remotely accurate.
Yep, that’s Biden! I wonder what land I’m in!
@ Jeff (the other one?)~
Thank You for your post,…you said what I was thinking.
@Mike – Not to mention there is one less Bay Area refinery with Marathon shutting down.
Thanks Biden. Smh
Yeezaws, I would be surprised if Biden could tell you what EOs he was signing, as he signed them, I would be even more surprised if he could remember half the EOs he signed.
Higher fuel prices increase the cost of all products that are transported. Everything will cost more. Biden economy he we come.
That was supposed to read “here we come” but my computer suddenly ran out of r’s,
I refilled ’em.
Yep, slow down the refineries and create your own shortage, then jack up the prices. Typical California.
This is what happens when you allow oil companies to merge. No competition. I’m surprised the price of gas isn’t higher.
As a refinery worker, I will say this, the reason refineries are slowed down has to do with jet fuel production. We run oil thru the refinery many cuts come from it including gas, jet and diesel. Planes aren’t flying because Americans are restricted travelling internationally due to Covid-19. Refineries have no more storage for jet, airport tanks are full. What are they supposed to do with the excess jet fuel? Can’t be turned into gasoline.
A turned down refinery doesn’t make money, no money could shut down another refinery then gas will be $6 a gallon. Supply and demand, drive less, gas prices go down.
I have driven an electric car now for 5 years. They are faster, easier, and cheaper than gasoline cars. Everyone who I talk to who owns one, loves it. Consider kickin gas and buy an EV. If you think they are too expensive, check out the used car prices on a 2017 Nissan Leaf.
Before you get too all high and mighty on the EV check into what runs the charging stations if not fully as back up. It’s usually diesel/fuel generators
I can see the value for those who do not drive distances, or want to take road trips, but I will stick with my hydrocarbon powered vehicles. Most of the cars, such as the Leaf, look a bit small for me.
And where does the electricity for the car come from? How far will your car go before it needs to be recharged? Don’t get me wrong I like the technology but our pie-in-the-sky narrow minded bureaucrats want everyone driving an electric car without giving much in the way of alternative including for those who don’t want to drive at all.
I have worked in a refinery in the Bay Area for 21 years. Make no bones about it, gas is used to fire diesel electric generators. That produces electricity. Electric cars run on gas. Unless they get their electricity from solar or hydro sources. Also not too many people want a car that has less than a 100 mile range between recharges. Unless it is a Tesla. Those are also quite expensive.
@American Citizen….You say you’ve worked in a refinery for 21 years and make this statement….”gas is used to fire diesel electric generators.”…huh?…right.
Ignorant voters…
You can thank Biden for that. Trump made us oil independent and the largest exporter in the world. Biden just undid it. You get what you vote for liberals. Way to go. And it’s just going to get worse.
.
My stock portfolio is thankful for high oil prices.
.
Long ago I though to myself that instead of being a “victim” of costly gasoline, I might as well make money (lots of it) from the price surge.
.
And thank you Mr. Biden for banning new leases and your recent lack of response to the Saudis and OPEC.
Mine too. CVX at 109 today. That’s a very important employer in Claycord so we all should be happy. Instead of whining about how high gas price is.
We’re off to see the wizard
The wonderful wizard of Oz.
Who didn’t see this coming.That’s what you get because you put Biden in office.He is going to put the hurt on us.The gas and oil industry are on there way out because of him.He said it to the Americans on public Television.Thank you Democratic’s.
LMAO at an electric car being faster than my 5-speed Mustang Bullitt.
You might want to research that.
@ TPC, I’m not a fan if electric cars, but the Tesla Roadster will accelerate from 0 to 60 in 1.9 seconds, do the 1/4 mile in 8.8 seconds, and has a top speed of 250 mph.
Dawg
When you run out of power on I 5 you can always get towed home. They will have to build resting rooms in gas stations or cafeterias while you wait for a charge.
Thank you all for voting for Biden and his green initiative people. IT has only been less than 2 months and this is just the beginning of the tax gouging and tax increases.
The entitlement crowd must be jumping for joy.
California will take it in the shorts again as always.
Keep th Recall Newsom train rolling.
I’m so thankful to the Democratic leadership as we wean off the dirty fossil fuels so now I can jump into my solar powered vehicle.
@chris, Why thank the Democrats? Were you being forced to not buy an Electric car.? You have been able to buy an electric car all along. Or can you not think for yourself and needed permission from the Dems?
… and Gov Newsom’s campaign pledge was to get under the gas price gouging – particularly in the Bay Area – and hold the oil companies accountable and get pricing inline with the rest of the state & country…. did it happen? nooooooooo another leadership failure..
Get ready, Fuel Summer Formulation is going to impact pricing, the folks at BART HQ are probably over the moon, maybe they’ll get riders
It is the season for normal refinery maintenance programs to kick in, especially on gasoline making capability. Off season on historical demand if you will. But gasoline prices are really dependent upon world crude oil prices except for regional pricing like California.
Unfriendly business environment in California is driving out the oil industry resulting in shortages and higher prices are product is being imported. Look at right here – Phillips plant getting converted, Avon refinery owned by Marathon shut down converting to a terminal. Old Shell plant is next for major changes.
Why would any oil company want to do business in Contra Costa County with their hostile approach to regulations and taxation. California thinks they can mandate the end of the oil industry which is ludicrous. We were on track to control pricing on the world market with higher US production which really is all about Homeland Security but looks like Biden knows better.
Higher prices are here to stay….
Hmmm,
Stop the Keystone pipe line,
Ban fracking,
Hand our gonads to our foreign friends and enemies,
And let them squeeze!
Folks, You ain’t seen nothing yet. Fasten your seatbelts!
You are going to see high gas prices, high unemployment ,lowering real estate prices, inflation on all other prices and high crime & taxes thanks to the liberal progressives, even socialists who are running things now. I’m just curious how long the media will be able to cover for them before your average American becomes enraged.
The average American is already enraged. It is the democrats that will never get out of denile. You know all 80 million of them.
Buy oil and gas stocks!!!
Problem explained,
https://tinyurl.com/rkczf2v4
I have a pic of a gas receipt from November, 2008. Price $1.87
We all know happened then
Vote for the clown, get stupid outcomes.
Well Marathon shut down its refinery east of Martinez, permanently. Phillips refinery in Rodeo will be going completely to Bio diesel in a few years. So having 2 less refineries, demand still high, prices go up. Wait until summer rolls around and a refinery in California shuts down unexpectedly. $$$. Gas prices will skyrocket.
Tired of high gas prices then drive a Prius, get out of your V8 SUV, buy a Tesla or other electric vehicle. Me, I still drive my Tahoe and don’t cry about it. I know what I bought and knew the mileage it got. Commute in a 6 cyl sedan also, could of bought a 4cyl but I liked the performance of the 6 cyl. Again a choice I made and I pay for it every time I get gas, but don’t cry about it. Cost of living in California.
Gas prices used to be less that 25 cents a gallon when I was a kid, so I learned a few things about life early. Prices always go up, they never go down. If the price doesn’t go up, the packaging gets smaller. Basic corporate greed, it;s why jobs went overseas. More profits for shareholders.
Everyone has forgotten about the Texas Freeze of a few weeks ago. The Majority of the Oil Refineries and Power Plants on the Gulf Coast had to shutdown due to frozen pipes or frozen natural gas lines. We got a price spike and it hasn’t dropped yet. One does not shutoff a switch to shutdown the Refineries, it takes days to shutdown and startup the plants. If there is no power one can’t run an oil refinery. I am sure that once all the refineries are up and running safely the price of motor gasoline will start to drop. Don’t Blame Bidden for this mess. Bidden didn’t freeze the Plants.
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