Gas prices are rising in Austin and could get worse. Here's why.
As Austin drivers know, gasoline isn't cheap right now. And prices could be going up.
The average price in the metro area has risen 5 cents per gallon in the past week, and regular unleaded gasoline currently averages $3.09 per gallon, according to industry website GasBuddy, which tracks fuel prices across the country.
Here's what's happening with gas prices
Prices in Austin are 21 cents per gallon higher than a month ago and 77 cents higher than a year ago, according to GasBuddy's survey of 830 stations in Austin. The cheapest station in Austin is currently priced at $2.77 a gallon while the most expensive is $3.49 a gallon.
The national average price of gasoline has dipped a slight 0.3 cents per gallon in the past week, currently averaging $3.40. The national average is up 8 cents per gallon from a month ago but is 83 cents per gallon lower than a year ago, according to GasBuddy data compiled from 11 million weekly price reports covering 150,000 gas stations across the country.
The national average price of diesel has fallen 6 cents in the last week and now stands at $4.19 per gallon.
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What to expect? We don't know
Patrick De Haan, head of petroleum analysis at GasBuddy, said that while some states, including Colorado and Ohio, have seen big decreases in gas prices, that is likely to be temporary.
"While more states saw declines rather than increases, any downward trends are still likely to be temporary and not necessarily long lasting," he said.
Prices began rising at the beginning of the year due to issues with refinery operations and other problems causing volatility in the market.
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Extreme weather across the country in December and January exacerbated the situation, analysts say. It caused a series of outages at refineries that produce gasoline, jet fuel and diesel.
For example, Colorado's only major petroleum refinery, Suncor, was disrupted by freezing temperatures in late December. When it tried to restart, a fire ignited, damaging equipment. Suncor said the refinery would be offline for weeks, and that has helped drive Colorado's gas prices up $1 per gallon in January.
"While Colorado's refinery issues are largely moving into the rearview mirror, challenges making the transition to summer gasoline are leading to tight supply and accelerating prices," De Haan said. "Motorists in some areas may be on the receiving end of good news, while others may not as we hit the second half of refinery maintenance season. You never know what the closing moments will look like, and motorists could be in for a dramatic ride if issues develop."
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Here's why gas prices could go up
Economic turbulence has kept crude oil prices on a roller coaster due to rising interest rates and concerns about the health of the banking sector, according to motor club AAA.
“Despite high demand for fuel over the spring break holiday period, the statewide fuel price average is holding steady week-to-week,” AAA Texas spokesperson Daniel Armbruster said. “If strong demand continues, retail fuel prices could increase in the coming weeks."
The switch over to more expensive summer-blend gasoline is also underway, and that tends to drive gas prices up by about 5 to 15 cents per gallon, Armbruster said.
Drivers in Texas are currently paying the sixth-lowest gas price average in the country, according to AAA. Meanwhile, drivers in California are paying the most at $4.83 on average for a gallon of regular unleaded.
This article originally appeared on Austin American-Statesman: Austin gas prices have gone up with more increases to come
