On examining numbers from the U.S. Energy Information Administration (EIA), AAA noted this week that January’s higher than normal prices on gas could mean a harder hitting year at the pump overall.
Though today’s national gas price averages $2.54 cents–only a cent more than last week–prices rose across 41 states. Florida was hardest hit, at a 9 cent increase, but it was hardly alone in the jump. Further, demand is decreasing even as inventory has increased by 3.6 million barrels (bbl). Taken all together, AAA warns these signs could point to a costly fuel year.
“Since 2014, gas prices decreased as much as 20 cents in the first three weeks of the year,” Jeanette Casselano, AAA spokesperson, said. “This year, gas prices are five cents more than on Jan. 1 of this year, a possible indication that prices in 2018 will likely be more expensive than last year.”
The West Coast region remains at the top of the pack, cost-wise. Six of the nation’s most expensive markets are housed there, and over the year, California boasted a 39 cent increase to its prices, Oregon 28 cents, Alaska 30 cents, and Hawaii 28 cents. Hawaii continues as the nation’s most expensive locale for fuel, at $3.35 per gallon, but California is not far behind at $3.19 per gallon. The EIA points out, though, that the region also has its highest inventory in four years: 34.7 bbl.
By contrast, the Great Lakes and Central regions have actually seen some decreases in cost on the week, in Indiana, Michigan, Ohio, Illinois and Kentucky, though most saw an increase of one to five cents. It could hardly be called celebratory, though, since gas prices are as much as 37 cents higher than at the same time last year, and Indiana, Michigan, Ohio, and Illinois have seen some of the nation’s largest increases in cost.
In the South and Southeast, while Florida and Louisiana led for weekly increases nationwide, Texas boasts the nation’s cheapest gas price, and other regional members are among the nation’s lowest. The Mid-Atlantic and Northeast also saw increases on the week, but they have also seen 17-25 cent increases in cost over the previous year. Lastly, in the Rockies, gas prices rose as high as 4 cents over the week.
Overall, domestic crude production continues to grow and exports have increased as well. Market observers, according to AAA, suggest this could keep OPEC and other crude producers from cutting production in a market rebalancing attempt. At the same time, five active U.S. oil rigs shut down last week, putting the total operational number of rigs at 747.