The statewide average price for a gallon of regular gasoline jumped nearly four-cents overnight to a statewide average of $3.14. Triple-A Fuel analyst Don Redman says a tight supply for gasoline and high demand has caused pump prices to rise, plus OPEC announced today it’s slashing production by two-percent.
“That’s absolutely going to have a big impact on the very near future, again all tied to what the price of crude is going to be,” said Redman.
Redman expects prices to keep through the rest of 2022.
“Pretty much tapped out in terms of the strategic oil reserves that the President has released, so there is pretty much no more leverage in that area to try and hold those prices down,” said Redman.
Redman expects crude oil prices to rise above 90-dollars a barrel which will also contribute to the rise in gas prices.
Also, the current statewide average for a gallon of diesel gasoline remains high at $4.50, which is nearly $1.50 higher than a year ago. Redman says the Russia-Ukraine conflict is why the price for diesel remains well above four-dollars a gallon.
“Europe really relies on diesel, they have a lot of diesel, but there main supplier came from Russia, so when that valve was cut off sort of speak, then the United States became a big exporter of diesel,” said Redman.
Comments