Topline
The national average price for a gallon of regular gas surpassed $3.50 on Wednesday, the highest U.S. gas prices have been since the fall, an increase that’s at least partially attributable to attacks on Russian oil facilities.
Key Facts
U.S. drivers are paying about $3.52 for a gallon of gas as of Wednesday, according to data from both GasBuddy and AAA.
California drivers are paying the highest prices at an average of $4.94 per gallon, drivers in Hawaii are not far behind—paying an average of $4.70—and drivers in Washington are paying an average of $4.35 per gallon, according to AAA.
Eleven other states average over $3.50 per gallon, including Nevada ($4.24), Oregon ($4.12), Illinois ($3.88), Alaska ($3.86), Arizona ($3.73), Michigan ($3.63), Pennsylvania ($3.59), Florida ($3.56), Montana ($3.53), Maryland ($3.52) and Indiana ($3.51), according to AAA.
Gasoline stockpiles in the U.S. have come down to 230.8 million barrels in the week ending March 15, a decrease from 247 million barrels a month before, according to data from the Energy Information Administration.
Big Number
$3.42. That’s how much the average gallon of gas cost in the U.S. on March 20 of last year, according to data from the Energy Information Administration.
Key Background
Gas prices are on the rise in part because of an ongoing geo-political conflict. Oil refineries in Russia have been hit by recent drone attacks as part of the country’s war with Ukraine, which has impacted global oil markets. In addition, the warmer the weather gets the more gas prices tend to increase. Gas demand nationwide has steadily increased over the course of the month and currently hovers around 8.8 million barrels per day, as of the weekend ending in March 15, according to data from the Energy Information Administration.
Tangent
Gas prices soared to record levels in the summer of 2022, surpassing $5 a gallon for regular gasoline in the U.S. on average. Those high prices stemmed in part from instability in the energy market caused by Russia’s invasion of Ukraine and subsequent sanctions imposed by much of the Western world. Brent Crude Oil, an international benchmark, and WTI, a national benchmark, both recorded substantially higher prices per barrel in the summer of 2022 than they do today.
