Higher gasoline prices are kicking in
Average gasoline prices saw the biggest weekly jump since December as refiners switched to more expensive summer blends and the nation begins to head into the peak driving season.
In greater Houston, average gasoline prices rose to their highest level since September 2015, climbing 6 cents to $2.15 from $2.09 the previous week. Local gasoline prices are about 27 cents a gallon higher than a year ago.
Nationally, prices rose an average of 4 cents a gallon over the week, increasing from $2.28 to $2.32. Prices nationally are also up about 27 cents a gallon from a year earlier.
Gasoline prices typically begin to rise at the end of the winter as refiners and motorists prepare
for the summer.
This year, however, the seasonal jump was delayed by falling crude oil prices through much of March over concerns that output cuts by OPEC and other major producers were not making a significant dent in the global supply glut.
The cost of crude accounts for most of the price of gasoline.
Crude prices have rebounded a bit recently as OPEC members signaled that they are ready to extend the production cuts through the end of the year.
A year ago, oil prices were just beginning to recover after falling to a 13-year low of about $26 a barrel in February. Oil settled Monday in New York at $50.24 a barrel, down 36 cents.
“We long anticipated seeing gasoline prices beginning to rise en masse in the spring, but uncharacteristically, it took until nearly April Fool’s Day for it to begin,” said Patrick DeHaan, GasBuddy senior petroleum analyst. “There’s no fooling this time — the rally in prices does seem to be more credible as oil and gasoline markets rebound.”
Gasoline prices are expected to rise throughout the year, but that of course will depend on crude prices.
Earlier this year, GasBuddy projected that fuel prices would rise to $2.50 a gallon this spring, peaking at about $2.70 a gallon. But DeHaan said the late start could mean smaller seasonal increases this year.
DeHaan said fuel prices should continue rising at least through the end of May.
Declining gasoline stockpiles have also supported higher fuel prices.
The Energy Department reported last week that the nation’s gasoline inventories fell by 3.7 million barrels.