Washington gas prices surged 36 cents in the past month, AAA says. Will it continue?
Gas prices tend to spike when demand is high and with COVID-19 vaccinations easing fears about travel and spring break ongoing, prices are soaring.
Washington’s average price per gallon for regular increased by 36 cents — from $2.906 to $3.267 — in the past month, AAA reports.
February’s winter storms in Texas, which forced refineries to shut down, pushed the national gas price average up nearly 40 cents to $2.86, a news release from AAA says.
The big reason is supply and demand and officials say gas prices aren’t heading south anytime soon.
“With increased demand and tighter gasoline supplies, we are looking at more expensive pump prices with little relief in the weeks ahead,” Jeanette McGee, a spokesperson for AAA said in the release.
Some of the demand comes as students and families hit the road.
AAA Washington said it noticed “an increase in bookings” for travel during this period.
“We’re seeing an increase in people’s confidence to safely travel and stay healthy,” Jennifer Cook, a spokesperson for AAA Washington, said in an email to McClatchy News. “Plus, people are getting vaccinated and returning to normal activities.”
The state hasn’t seen such high average prices this time of year since 2014, when gas cost $3.61, Cook said. Washington saw its lowest average price in the last eight years in 2016, when gas cost $2.20 this time of year.
At the beginning of March, AAA anticipated the national average to hit $2.80, McClatchy News previously reported.
Prices in Washington vary by region, with the more expensive prices on the west side of the Cascade mountains, according to AAA. Jefferson County, which encompasses a portion of Washington’s coast, has the most expensive average of $3.45 while Asotin County has the cheapest gas prices at $2.78.
Other cities of interest: Bellingham ($3.31), Olympia ($3.35), Tacoma ($3.36) and Tri-Cities $3.04).
Washington’s price for regular gasoline is 37 cents higher than its next door neighbor, Idaho, according to AAA. Idaho’s average price for gas as of Monday is $2.89.
AAA expects prices to keep rising this week after the Energy Information Administration’s weekly reports revealed a major decline in gas stocks and a big rise in demand, according to the release.
The EIA reports’ demand measurement ending March 5 was the highest it’s been since the end of November 2020, “which coincidentally was the same month we saw stocks as low as they are today,” AAA said.
This is expected though, according to Cook.
Oil refineries start slowing production in late February or early March to switch supplies from the winter fuel blends to the summer fuel blends, plus perform any necessary repairs or maintenance, Cook said.
“It’s at this time that prices start to rise,” she said. “Typically, we see prices rise through May and start to plateau for the summer and then drop after the summer driving season. Obviously, last year was the exception due to the impacts of COVID-19 and a significant decrease in demand.”
Cook also pointed out another major factor that impacts costs at the pump: crude oil prices.
“Due to OPEC’s decision to only slightly increase production for April, there will be more pressure on supplies,” Cook said.
This story was originally published March 15, 2021 at 12:59 PM with the headline "Washington gas prices surged 36 cents in the past month, AAA says. Will it continue?."