Every time it seems that gasoline prices could be heading lower, they start creeping up.
According to the American Automobile Association (AAA), gasoline prices are $3.405 per gallon nationwide, up from $3.365 a week ago.
While this is lower by more than six cents a month ago, they are could test this level in the coming days, especially as crude oil starts trending higher.
The other reasons? Strengthening demand and the seasonal switch.
From AAA:
“Another reason is that the seasonal switch to summer blend gasoline is underway, which may account for this bounce in pump prices,” said Andrew Gross, AAA spokesperson, “This blend is designed to lower emissions during the summer and is more expensive to refine. Switching to summer blend usually adds about five to ten cents to the price of gasoline.”
According to new data from the Energy Information Administration (EIA), gas demand jumped from 8.91 million to 9.11 million b/d last week. Meanwhile, total domestic gasoline stocks decreased by nearly 1 million bbl to 239.2 million bbl last week. The increase in gas demand, amid tighter supplies, has contributed to rising pump prices. If demand continues to grow, drivers will likely continue to see pump prices increase.
Don’t worry. It’s all the fault of mom-and-pop gas stations!
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