Gas Prices Rise Slightly, But Don't Panic Just Yet

August 9, 2021 Topic: economy Region: Americas Blog Brand: Politics Tags: GasolineFuelEconomyMotoristsTravel

Gas Prices Rise Slightly, But Don't Panic Just Yet

The cost of fuel often drops in the fall as temperatures get cooler and the end of summer vacations means fewer long trips. 


Gas prices in the United States once again rose last week, although the increase was a relatively small one. That’s according to a report released Monday by GasBuddy. 

According to the app’s blog, the average gas price in the United States rose 0.6 cents per gallon from a week ago to $3.18 per gallon. That’s 3.5 cents more than a month ago and more than a dollar more than a year ago when gas prices were near pandemic lows. Gasoline also reached a new high for demand this year.  

However, gas prices may soon begin dropping, as the fall season approaches.  

“Motorists have seen average gas prices edge slightly higher over the last week, even as the price of oil saw selling pressure,” Patrick De Haan, head of petroleum analysis for GasBuddy, said in the blog post. “This leads me to believe that the tide may soon turn on gas prices, so long as we don’t see hurricanes target the country. In addition, GasBuddy data showed a decline in gasoline demand last week as we inch towards the end of the summer driving season, a time when demand softens.” 

“With the factors that drive prices higher now softening, I’m hopeful that in the next few weeks, we’ll start to see average gas prices declining,” Patrick De Haan added. “However, motorists shouldn’t get too excited yet—larger declines will likely not come until late September and October, as we transition back to cheaper winter gasoline.”

The most frequent gas price in the country, once again, was $2.99 per gallon, while the median U.S. price rose to $3.00, up from $2.99 the week before. 

The states with the lowest average price were Mississippi ($2.77), Louisiana ($2.79) and Texas ($2.82), while those with the highest were California ($4.37), Nevada ($4.04) and Hawaii ($4.04). 

A report from AAA found the average gas price was $3.19 a gallon, which it described as the highest gas price of the year, although prices fluctuated from state to state, rising by several cents in some and falling in others. The average price in Michigan rose 9 cents, while Colorado rose 7 cents, and Ohio and Florida each rose 6 cents. The price of gas in Delaware declined by 7 cents, week over week, according to the AAA.  

“We continue to see very robust gasoline demand for the peak summer driving season,” Jeanette McGee, a spokesperson for AAA, said in the report. “The latest demand rate was 2% higher than the same time period in 2019, while gasoline stocks are about 1% below.”

Gas prices often drop in the fall, as temperatures get cooler and the end of summer vacations means fewer long trips. 

Stephen Silver, a technology writer for the National Interest, is a journalist, essayist and film critic, who is also a contributor to The Philadelphia InquirerPhilly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver. 

Image: Reuters