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By Aleks Phillips
U.S. News Reporter
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Gasoline prices are on the rise again, after falling from a record high in 2022—a surge caused by a global oil crisis that was prompted by the war in Ukraine. Thursday's national average for retail gas is $3.29 a gallon, up 13 cents from $3.16 a week ago.
A combination of national and local factors—including last month's cold snap and the end of tax relief—appears to be driving the rise, in addition to the knock-on effect from post-Christmas travel.
The good news is the American Automobile Association (AAA), which tracks daily prices across the country, sees this spike in prices being short-lived.
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Andrew Gross, a spokesperson for the organization, said on Tuesday: "The cost of gas will likely rise a bit more before this surge stalls due to less expensive oil and a return to seasonal driving patterns."
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Gross told Newsweek on Thursday that "this current increase will likely start to flatten out in a few days," as demand from motorists declines now that many have returned from the holiday season.
While today's national average is a far cry from the June 2022 high of $5.01 per gallon, it too is in part caused by events beyond oil producers' control.
The blizzard and cold snap that swept the country brought extremely cold temperatures to the Gulf Coast, causing the temporary closure of oil refineries in the region—"refineries as far south as Texas and the Gulf Coast were affected, and some still are at this point," Gross said.
Perhaps tellingly, statistics on retail gas prices by the Energy Information Administration (EIA) show regular gas prices in the Midwest and the U.S. Gulf rose by more than in other regions in the past week.
Newsweek contacted Chevron, Shell, and Koch—all of which have refineries in the region—to comment on the impact on their businesses.
EIA data shows domestic gasoline stocks fell from 226 million barrels to 223 million barrels between December 16 and 23, 2022. Meanwhile, consumer demand for gas rose from 8.7 to 9.3 million barrels per day last week.
Lower supply and higher demand from people traveling home for the holidays pushed retail prices up, the AAA said. As refineries start replenishing stocks, and seasonal driving patterns return, these prices are anticipated to fall.
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However, the AAA does expect some regional price increases due to changes in states' gas taxes that came into effect on New Year's Day; New York has ended its fuel tax holiday, and Pennsylvania, Illinois, and North Carolina have increased their respective gas taxes.
As of Thursday, retail gas costs $3.47 per gallon in New York, $3.66 per gallon in Pennsylvania, $3.39 per gallon in Illinois, and $3.14 per gallon in North Carolina.
Globally, crude oil prices have continued to tumble from highs in the summer. In the past week alone, the Western Texas Intermediate price had fallen from just under $80 a barrel to less than $75.
"This takes a lot of upward pressure off pump prices," Gross noted.
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