Gasoline Prices Climbing, but Price Spike Unlikely to Be Sustained

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Gasoline prices are rising along with summer temperatures, as the price of fuel rose two cents to $2.28 per gallon Monday, according to gas-price website GasBuddy.

Motorists in 42 states saw gas prices rise in the past week, a reversal from the prior week, when 20 states saw average prices rise.

The price of oil rose Monday morning to $46.37, following news that Saudi Arabia pledged to lower crude exports and Nigeria plans to limit its production.

“The turnaround in gasoline prices comes as gasoline demand hits its peak of the summer driving season,” said Patrick DeHaan, senior petroleum analyst at GasBuddy. “Coupled with rising oil prices, the situation has led to a rise in wholesale gasoline prices, which fueled much of the rise as stations passed along higher prices.” DeHaan said motorists shouldn’t get used to seeing these types of increases and that there were many one-time adjustments in the past week that are unlikely to be repeated this week.

GasBuddy said the increase in gasoline nationally was led by price hikes in areas that routinely see major volatility. Prices in Michigan, Indiana, Ohio, Kentucky and Florida had midweek spikes of more than 10 cents per gallon.

Only one state reported average gasoline under $2. South Carolina reported the cheapest gas at $1.97 a gallon. Other states with the cheapest gas per gallon were: Alabama ($2.00), Mississippi ($2.00), Oklahoma ($2.00), Arkansas ($2.03), Tennessee ($2.05), Louisiana ($2.06), Virginia ($2.08), Texas ($2.09) and Missouri ($2.10).

The states with the most expensive gasoline prices were: Hawaii ($3.01), California ($2.90), Washington ($2.80), Alaska ($2.72), Oregon ($2.65), Nevada ($2.60), Pennsylvania ($2.50), Idaho ($2.48), Connecticut ($2.42) and Utah ($2.42).

Oil prices were little changed last week, with West Texas Intermediate crude oil finishing at $45.77 per barrel.