Gasoline Prices Increase to $2.58
Photo by Vince Taroc.
The national average price of gasoline increased 1 cent from last week to $2.38, 2 cents more than prices both a month and a year ago, according to AAA.
AAA reports that a moderate dip in gasoline prices are normal following long holiday weekends, and prices in 30 states have fallen as much as 4 cents. The first three weeks of June are typically an indicator of whether gasoline demand can sustain through the summer.
The price per crude barrel opened at under $50 for the second week in a row, reflecting the market's skepticism about the effectiveness of OPEC's production cuts to help rebalance the global supply of oil, according to AAA. The cuts will last through March of 2018.
According to a report from the U.S. Energy Information Administration, gasoline demand hit a record 9.822 million barrels per day for the week ending on May 26, beating last June's record by 7,000 barrels per day. Refinery output also topped 10 million barrels per day for the fourth week in a row. Refineries are maintaining high storage levels, opting to take stocks from storage and replenishing them with new gasoline to meet high demand.
Least expensive gas prices nationwide include Tennesee ($2.11), Mississippi ($2.09), Oklahoma ($2.09), Alabama ($2.09), and South Carolina ($2.03), according to AAA.
Biggest changes to gas prices this week include Indiana (up 7 cents), Michigan (up 7 cents), Florida (up 6 cents), Illinois (down 4 cents), Delaware (down 3 cents), and Missouri (down 3 cents).
California topped the list of most expensive gas markets at $3.09, followed by Hawaii ($3.05), Alaska ($2.90), and Washington ($2.87).
The price of diesel has decreased about one cent to $2.56 from a week ago, 15.7 cents higher than the same week in 2016.