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Gas prices increase in synch with oil costs and growing demand

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Gas prices increased by a nickel this week due to a surge in oil prices and more drivers on the road as the winter weather thawed, according to the latest AAA report. 

The national average cost for a gallon of gas increased to an average of $3.15 per gallon, as oil costs edged past $70 a barrel and gas demand increased to 8.14 from 7.89 million barrels per day, according to data from the Energy Information Administration (EIA).

“We are in that time of year where pump prices begin to heat up, usually peaking around July,” AAA spokesperson Andrew Gross said. “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.”

AAA said that if oil prices continue to increase, it’s likely that drivers will see pump costs creep up in tandem. 

If you’re trying to lower your overall auto costs, you could consider switching auto insurance providers. You can visit Credible to compare quotes from different companies without affecting your credit score. 

KNOWING HOW INSURANCE RATES ARE CALCULATED COULD SAVE DRIVERS MONEY: SURVEY

Motorists paid the most in these states 

Gas costs for motorists nationwide fluctuated, with some states tallying higher averages than others. These states saw the most significant swings in pump prices:

  • Missouri (+16 cents)
  • Texas (+11 cents
  • Minnesota (+11 cents)
  • Indiana (−11 cents)
  • Iowa (+10 cents)
  • Arkansas (+10 cents)
  • Delaware (+9 cents)
  • Kansas (+9 cents)
  • Florida (+9 cents)
  • Colorado (+8 cents)

Drivers in these states paid the cheapest pump prices:

  • Wyoming ($2.68)
  • Oklahoma ($2.71)
  • Utah ($2.72)
  • Wisconsin ($2.74)
  • Kansas ($2.75)
  • Mississippi ($2.75)
  • Colorado ($2.76)
  • Arkansas ($2.77)
  • Kentucky ($2.79)
  • Missouri ($2.79)

Shopping for cheaper auto insurance is another way drivers can lower the cost of owning a car. You could consider changing your auto insurance provider if you want to save money on your auto costs. Visit Credible to find your personalized premium without affecting your credit score.

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Gas prices could head much higher

Drivers should brace for a more significant surge in pump prices as the year shifts to the spring months, according to Patrick De Haan, head of petroleum analysis at GasBuddy.

“We’ve seen the national average price of gasoline bounce back up after cold-weather-related refinery shutdowns pushed up the wholesale price of gasoline,” De Haan said in a statement. “Plus, recent GDP data and new attacks in the Red Sea have pushed oil prices to their highest level since November. 

“While prices have inched up and may continue to slowly rise, I believe the larger increases will be witnessed in a few weeks as we enter mid-February, lasting through April or May, during which the national average could rise 35 to 85 cents per gallon. Other issues and tensions could complicate how quickly prices rise or how high they go, so while the rise is not completely charted, it could deviate from our expectations.”

If you are struggling with rising prices and want to save money, you could consider finding a new auto insurance provider to lower your monthly premium. Visit Credible to compare multiple car insurance providers at once and choose the one with the best rate for you.

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Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

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