Gasoline prices are on the rise-increasing from a week ago by 2.7 cents on average in the United States, Gas Buddy said in a note on Tuesday.
The nation's average price for a gallon of gasoline is now $3.55, GasBuddy data shows. Meanwhile, diesel prices have fallen by 4.9 cents per gallon over the last week, to $3.91 per gallon.
"Gasoline prices have drifted higher in the last week due to some relatively minor refinery kinks and low gasoline supply, but it may not be a trend that lasts too much longer," GasBuddy's head of petroleum analysis, Patrick De Haan, said. "As we unofficially start the summer driving season, the national average is likely to spend much of the summer in the range of $3.35-$3.85 per gallon, though it could go higher if unexpected refinery outages flare up, or we see a major hurricane or economic development. While gasoline prices have inched up slightly, we're still faring much better than we did last year, when the national average started to soar after Memorial Day on its way up to the $5 per gallon mark. In addition, gas prices may temporarily rally if a debt ceiling deal passes through Congress in the weeks ahead, based on the optimism that such a deal could avert a major recession, keeping oil demand stronger this summer."
Gas prices have ticked up even though gasoline demand over the Memorial Day weekend is estimated to be 1.1% lower than demand for the same weekend last year, despite the surging gas prices at the start of the driving season in 2022, GasBuddy data showed.
On Memorial Day on Monday, gasoline demand in the United States was down by 3.6% compared to Memorial Day 2022, according to GasBuddy data, De Haan noted. Forecasters had expected a 6% demand increase.
Gasoline prices could ease in the coming days after this week's oil price slide which saw WTI fall below $70 per barrel.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group. More