Gas prices usually start climbing in late winter and spring as American drivers take to the highways for vacations and refineries re-tool to make summer blends.
It looks to be a steeper price hike this year.
Why the increase
Crude oil is the biggest factor in pump prices. So the decision to cut oil production by OPEC — led by Saudi Arabia and Russia — will mean tighter supplies and higher global prices. Anticipating reductions, speculators have already started bidding up wholesale prices, which will ripple through the system to the pump price.
A year ago, prices were soaring, mostly because of the Russian invasion of Ukraine. To soften the blow, President Biden released huge quantities of oil from the nation’s strategic reserve, while in Georgia, Gov. Brian Kemp suspended the state’s gas tax.
Relief not likely
Drivers may not get the same relief this year.
Kemp reinstated the tax over the winter. Biden has been criticized for not replenishing the reserve when prices were low.
What we’re paying
Atlanta average, gallon of gas
Now*: $3.32
Week ago: $3.18
Month ago: $3.11
Year ago: $3.90
Why prices are rising
Inventories are falling
Spring driving has increased demand
OPEC has cut production by about 3.66 million barrels a day
Speculators are pricing in anticipated shortages
*As of Thursday morning
Source: Gas Buddy, Energy Information Administration, International Energy Agency, World Population Review, American Petroleum Institute
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