Not to be too crude, but high gasoline prices are likely to stick around this summer
High gasoline prices likely won't be going away anytime soon.
Ohio's statewide average on Monday was $4.09 for a gallon of gasoline, with the Akron-area average at $4.05 a gallon, according to the latest available pump figures from the American Automobile Association, or AAA.
Both state and local gasoline prices are now higher on average than they were a month ago. And a year ago, Akron-area regular gasoline was selling on average for $2.88 a gallon.
Akron-Canton gas prices
Prices in the Akron-Canton area on Monday ranged from a low of $3.63 a gallon in Canton to a high of $4.35 a gallon at a station in Cuyahoga Falls, according to GasBuddy.com, a website that relies upon drivers to report the latest available pump prices. Gasoline pump prices were rising in the area, according to GasBuddy.
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High global crude oil prices, driven in large part by the ongoing Russia-Ukraine war, are hitting just as the significant-fuel-demand summer driving season is arriving, said Kevin Thomas, regional president for AAA Ohio in Akron. That combination is helping drive the prices higher, he said.
"We're getting up there, close to record levels," Thomas said. According to AAA, the highest recorded price for a gallon of gas in Ohio was $4.16 a gallon in May 2011. (That would be the equivalent of $5.11 a gallon in inflation-adjusted 2022 dollars.)
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The simplest explanation for the higher gasoline prices is what is happening with the price of crude oil, Thomas said.
Crude oil prices fluctuate
Crude oil prices on Monday were falling at the same time stock market averages were also down significantly. Brent crude fell was down $5.92, or 5.3%, to $106.47 a barrel in early afternoon trading. U.S. West Texas Intermediate crude, meanwhile, was down $6.16, or 5.6%, to $103.61 a barrel. But prices remained significantly higher than a year ago.
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Brent crude prices are expected to average $108/barrel into early summer, then average $102/barrel through the second half of the year, the Energy Information Administration, or EIA, said recently.
Crude oil typically makes up 59% of the cost of a gallon of gas, according to the EIA. Refining is the next highest factor at 18%, followed by distribution/marking costs and taxes at 12% each.
The EIA in mid-April projected retail gasoline nationally will average $3.84 a gallon through September, up from $3.06 a gallon last year. That would be the highest price for a gallon of gas, adjusted for inflation, since 2014, the EIA said in its annual summer fuels outlook.
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The EIA warned that a wide range of factors could affect energy markets and related consumer costs in upcoming months, including the impact of sanctions on Russia and what happens with the global demand for oil.
Also affecting prices right now is the annual switchover at refiners from winter-grade fuel to summer fuel, Thomas said. The switch often temporarily crimps the supply of gasoline.
Memorial Day forecast coming
AAA expects to have its annual Memorial Day holiday travel forecast ready at the end of the week, Thomas said.
"We know we're not going to return to pre-pandemic levels of Memorial Day travel," Thomas said. In 2019, about 43 million Americans traveled on the long Memorial Day weekend. It's likely no more than 38 million people will be driving on the long weekend this year, Thomas said.
Beacon Journal reporter Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ.
This article originally appeared on Akron Beacon Journal: Gas prices rising in Akron area, summer relief not likely coming
