The average price for a gallon of gasoline is up by a nickel across the country, reversing a downward trend as seasonal demand ramps up, according to the latest data from AAA. Despite the increase, gasoline prices are still 33 cents less than they were a year ago.
Monday's national average of $3.148 is six cents more than a month ago.
"We are in that time of year where pump prices begin to heat up, usually peaking around July," said Andrew Gross, AAA spokesperson. "But unless something shocks the global oil market and causes prices to spike, the national average for a gallon of gas will probably stagger higher, with some flat days or even small price dips along the way."
Echoing AAA's observations, Patrick De Haan, head of petroleum analysis at GasBuddy, highlighted the recent upward trend in gas prices to Newsweek, attributing the rise to oil prices recently reaching multi-month highs, and said he anticipates further increases as the transition to summer gasoline begins.
"While most states saw price increases, they were somewhat tame, though the trend will likely begin to accelerate toward the end of the month,' De Haan explained, cautioning that any short-term decreases are merely a clearance sale on winter gasoline.
Leading the pack with the highest gasoline prices is California. Regular gasoline in the Golden State averages $4.57 per gallon, followed by mid-grade at $4.78, premium at $4.95 and diesel at $5.28 per gallon. These prices reflect California's stringent environmental regulations, high taxes and its status as a major consumer market.
"While Southern California is already beginning the transition to summer gasoline, and with it, higher prices, we could see a brief 'clearance sale' on remaining winter gasoline in some pockets of interior states as refiners start to move these time-sensitive barrels out of the system," De Haan said.
In contrast, states like Alabama and Arkansas offer some of the most affordable gasoline in the country. Alabama's regular gasoline is priced at $2.90 per gallon, with mid-grade at $3.30, premium at $3.69 and diesel at $3.77. Similarly, Arkansas sees regular gasoline at $2.77 per gallon, mid-grade at $3.15, premium at $3.53 and diesel at $3.58.
Alaska, often perceived as a high-cost state, surprisingly does not top the list for gasoline prices today. Regular gasoline in Alaska costs $3.47 per gallon, with mid-grade at $3.70, premium at $3.89 and diesel at $3.85. Despite its remote location and transportation costs, Alaska benefits from its status as an oil-producing state.
Arizona also reflects a moderate pricing structure, with regular gasoline at $3.26 per gallon, mid-grade at $3.58, premium at $3.87, and diesel at $3.88.
"Motorists shouldn't be fooled into thinking any drop in prices is a long-term trend, but rather a very short-term one," De Haan explained. "I expect any modest and temporary drops in prices will be replaced by pricier gasoline as we get closer to the start of spring."
Nationally, the variation in gasoline prices is an interplay of local and global factors. U.S. energy policies, global oil market dynamics, and even geopolitical events play a role in determining the prices at the pump.
As the nation grapples with these varying fuel costs, the impact on consumers and businesses is tangible. States with higher gasoline prices often see a ripple effect on the cost of goods and services, while states with lower prices enjoy a relative economic advantage.
Are you seeing higher gas prices in your state? Newsweek wants to hear from you. Contact us at personalfinance@newsweek.com.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Aj Fabino is a Newsweek reporter based in Chicago. His focus is reporting on Economy & Finance. Aj joined Newsweek ... Read more
To read how Newsweek uses AI as a newsroom tool, Click here.
