雅虎香港財經 Gasoline: 'Higher prices are ahead for consumers'
Drivers can expect to pay higher prices at the pump in the coming weeks due to tighter gasoline supplies and a more expensive summer blend.
On Wednesday, the average price of gas in the US inched toward $3.40 per gallon, up $0.18 from a month ago, according to AAA data.
"This week, Gulf Coast refiners, which account for nearly 50% of the nation's refining capacity began to transition to the more expensive summer grade gasoline blends. That means that higher prices are ahead for consumers," wrote Andy Lipow of Lipow Oil Associates in a note to clients on Wednesday.
"I expect further increases of another 10 to 15 cents per gallon over the next two weeks."
In California, one of the priciest states for driving fuel, the average hovered at $4.88 per gallon.
California refiners have started producing the more expensive summer grade of gasoline over the past six weeks, resulting in increased prices of $0.25 per gallon, according to Lipow.
Ongoing refinery maintenance has also resulted in tighter supplies and lower stockpiles, with the latest industry data from the American Petroleum Institute showing a draw in crude and gasoline inventories last week.
Lipow also noted BP's Whiting, Ind., refinery, the largest in the Midwest, is still recovering from the impacts of a power outage caused by cold weather on Feb. 1.
On the road again
Gasoline prices typically rise heading into the spring as more motorists get on the road after a winter lull.
Retail prices at the pump reversed a downward trend starting in late January as the price of crude oil also moved higher during the month. As of Wednesday, West Texas Intermediate (CL=F) crude oil prices were hovering above $79 per barrel while Brent (BZ=F), the international benchmark price, traded above $83 per barrel. WTI prices started the year just above $70 a barrel.
Higher gas prices in February were one of the main drivers behind a surprising rise in inflation reported earlier this year.
The gasoline index increased 3.8% from the previous month, marking a sharp reversal from January's 3.3% decline, according to data from the Bureau of Labor Statistics released Tuesday. All of the components within the energy index rose last month, sending the gauge up 2.3% in February after it declined 0.9% in the prior month.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
