Spring Ushers in Higher Gas Prices

March 26, 2018 - With the arrival for spring, gas prices immediately became more expensive nationwide. The national gas price average is $2.61, which is a nickel more expensive on the week. As prices soar, the Energy Information Administration (EIA) reports that demand dropped to 9.3 million b/d as gasoline stocks dipped (1.7 million b/d) on the week.

“Right now we are seeing the market starting to purge winter-blend gasoline to make room for summer-blend,” said Marilyn Buskohl, AAA spokesperson. “The jump in gas prices is just the beginning for the season. AAA forecasts the national gas price average will be as much as $2.70/gallon this spring and summer.”

Today’s national gas price average ($2.61) is nine cents more than a month ago and 33 cents more expensive than this time last year.

South Dakota Average Gas Prices:

Quick Stats

• The nation’s top 10 largest weekly increases are: Idaho (+16 cents), Utah (+14 cents), Delaware (+13 cents), New Mexico (+12 cents), South Carolina (+10 cents), Maryland (+10 cents), Alabama (+9 cents), Oregon (+9 cents), Michigan (+9 cents) and Washington (+9 cents).

   

• The nation’s top 10 least expensive markets are: Missouri ($2.31), Mississippi ($2.35), Arkansas ($2.36), Alabama ($2.37), Louisiana ($2.39), Texas ($2.39), South Carolina ($2.40), Oklahoma ($2.40), Tennessee ($2.41) and Ohio ($2.42). 

Central and Great Lakes Region

Gas prices rose sharply in the Great Lakes and Central region on the week. Michigan (+9 cents) and Nebraska (+9 cents) saw the largest increase followed by Indiana (+8 cents), Iowa (+7 cents) and Illinois (+7 cents).

Within the region and the country, Ohio is the outlier seeing gas prices drop one cent since last Monday.

North Dakota ($2.57) was the only state to see prices remain stable in the region in the last week, but continues to be among the most expensive among the Great Lakes and Central. Coincidentally, the state is one of only two in the region to see a gas price drop on the compared to last month: North Dakota (-3 cents) and Minnesota (-2 cents). All other states are paying more to fill up compared to February 2018 with three states paying a considerable amount more on the month: Michigan (+22 cents), Indiana (+21 cents) and Illinois (+15 cents).

For a second week, gasoline inventories dropped. According to EIA data, the region took a 1.3 million bbl draw to register at 58.8 million bbl. Overall, inventory levels stand just below this time last year, but about 3.5 million bbl above the five-year average for this time of year.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased $1.58 to settle at $65.88. U.S. crude production continues to boom. According to EIA’s data last week, production in the U.S. hit another record high of 10.41 million b/d. As another sign of expanded crude production growth in the U.S., Baker Hughes reported that the U.S. gained four active oil rigs last week, bringing the total to 804. The total is 152 more rigs than last year at this time.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

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