African Reserves

US gas prices climb for the first time in nearly 100 days – and remain 15% higher than last year

The US average for a gallon of gasoline rose to $3.681 on Wednesday from $3.674 on Tuesday, marking the first increase in 99 days, according to AAA data.

A month ago, prices were $3.904 a gallon, while a year ago a gallon was $3.192, about 15% below the current rate.

According to the AAA, Mississippi has the cheapest gas in the country at $3.10. The average pump price in California is $5,493.

Prior to the rise, gasoline prices saw their smallest weekly drop in months over the past week.

“All streaks must end at some point, and the national average for a gallon of gasoline has fallen $1.34 since peaking in mid-June,” Andrew Gross, a spokesman for the agency, said Monday. ‘AAA in a statement. “But there are big factors weighing on global oil prices, war, COVID, economic recession and hurricane season. All of this uncertainty could drive up oil prices, likely driving pump prices slightly higher.”

Since Russia invaded Ukraine in February and thanks to the ensuing energy crisis in Europe, gas prices in the United States have risen sharply alongside world oil prices, topping $5 a gallon il three months ago. Prices had risen so much that signs of demand destruction appeared during the summer driving season.

The ensuing steady decline in prices came as the Biden administration began releasing record amounts of crude oil from the Strategic Petroleum Reserve, as fears of a recession weighed on demand forecasts.

The Energy Information Administration reported that gasoline demand fell to 8.49 million barrels per day last week from 8.73 million barrels per day the previous week.

Oil prices fell on Wednesday, with West Texas trading down 1% at $83.12 a barrel. Brent crude, the international benchmark, fell 0.61% to $90.13.