Topline
The average price of gas in the U.S. increased for the seventh straight day Tuesday after more than three months of falling prices—and it’s over $5 per gallon in four states amid tight supplies as Russia escalates its war in Ukraine and Hurricane Ian jeopardizes oil production in the Gulf of Mexico.
Gas prices increased for the 7th straight day on Tuesday, following a three-month drop in prices.
Key Facts
Gas is the most expensive in California, where a gallon costs $5.88 on average—up from $5.46 last week, according to AAA data.
Nevada, Oregon and Washington also saw jumps back over the $5 threshold, to $5.12, $5.12 and $5.02, respectively—more than a 50 cent increase in Oregon and Washington and a 40 cent jump in Washington.
The price of gas increased in 11 other states over the past week, with the biggest rises in Alaska ($4.64 to $4.88), Ohio ($3.45 to $3.65), Indiana ($3.66 to $3.90), Michigan ($3.80 to $4.12) and Wisconsin ($3.46 to $3.88).
Experts believe the increase could be the result of tight supply, partly because of Russia’s war in Ukraine and continued threats to shut off energy supplies, and it could become worse if Hurricane Ian—which made landfall in Cuba Tuesday morning—disrupts oil production in the Gulf of Mexico.
Prices dropped in 22 states over the past week, primarily in the South and the Northeast, with the biggest drops in New Hampshire ($3.48 from $3.58), Connecticut ($3.33 from $3.44), New Jersey ($3.48 from $3.58) and Massachusetts ($3.56 from $3.67).
Gas is cheapest in Mississippi ($3.07), followed by Louisiana and Texas, where a gallon costs $3.11.
Key Background
A 99-day drop in gas prices came to an end last week, with the national average rising to $3.67. Prices peaked in March at $4.33 per gallon—the highest ever recorded in the U.S., passing the previous high of $4.11 in July 2008. Prices had soared for months this spring amid high inflation and as the price of crude oil spiked following Russia’s invasion of Ukraine in February and the Kremlin’s threats to cut energy supplies to Europe.
Tangent
As Hurricane Ian heads toward Florida’s Gulf Coast, more gas stations in Florida are running on empty, with more than 11% of Tampa Bay area stations without gas, and stations in the Gainesville area not far behind (6.43% closed), according to GasBuddy head of petroleum analysis Patrick De Haan.
Further Reading
U.S. Gas Prices Rise For First Time In 100 Days (Forbes)
Why Natural Gas Prices Quadrupled In Two Years (Forbes)
Gas Prices Rising Again—These States Are Where Cost Is Spiking Fastest (Forbes)
Source: https://www.forbes.com/sites/brianbushard/2022/09/27/gas-prices-rise-for-7-straight-days-heres-where-its-most-expensive/