Why gas prices are rising in 2024, where prices are rising

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Motorists have enjoyed lower fuel prices this winter between $3 and $3.30 nationwide, but costs are rising and experts say the trend will likely continue into the spring.

A regular gallon of gasoline costs an average of $3.34, which is 10 cents more than a week ago and 22 cents more than last month, according to gasoline price tracking site GasBuddy.

Unfortunately for motorists, there are several reasons why the outlook calls for gas prices to continue rising – and why it’s wise to continue looking for ways to save on gas.

On Sunday, several OPEC+ countries announced they would extend oil production cuts, which puts upward pressure on oil and gas prices.

Crude oil, which accounts for about 57% of what motorists pay for a gallon of gasoline, was trading at about $79 a barrel on Monday, according to West Texas Intermediate. The cost has risen about 9% over the past month and is near its highest level since November. Seasonal trends also play a role in the rise and fall of gas prices.

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Why gas prices rise in the spring

Historically, gas tends to be cheaper in the winter, when driving activity is low and the country uses winter-grade gasoline. In the spring, demand for gas increases as warmer weather arrives, and prices are also affected as refineries switch to the more expensive summer blend.

“We are entering the spring break season, and historically, March and April bring higher gas prices,” AAA spokesperson Aixa Diaz said in a recent report. “With warmer temperatures, road trips increase, and this time of year tends to be a precursor to the summer driving season.”

Patrick De Haan, head of petroleum analysis at GasBuddy, said in a report that refinery maintenance usually peaks in March, “impacting the amount of gasoline that can be produced as we make the transition to summer blends. This always limits supply, leading to further gas price increases.”

On a more positive note, gas prices are lower than they were in 2022 and 2023. In some states, the average is still less than $3 a gallon, including Mississippi ($2.88), Colorado ($2.88), $93) and Texas ($2.93). according to the AAA.

Citing increased capacity at U.S. refineries, the Energy Information Administration expects gas prices to be lower overall in 2024, averaging $3.31 a gallon, compared to $3.52 last year.

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