Have you stopped at a gas station recently to fill up your tank?
Did it seem like it hurt your pocketbook a little more than usual?
You’re not imagining things.
Motorists in Corpus Christi and nationwide are seeing a seven-year high in gas prices, thanks to a recent surge in the price of crude oil.
The average cost for a gallon of regular gasoline in Corpus Christi has increased over 6 cents in the past week, according to industry website GasBuddy, which tracks fuel prices nationwide.
GasBuddy’s daily survey of gas stations in Corpus Christi shows prices are 7 cents per gallon higher than a month ago, and stand $1.11 per gallon higher than a year ago.
The cheapest station in Corpus Christi has gas priced at $2.79 per gallon, while the most expensive is priced at $3.06 per gallon, according to GasBuddy.
The national average price for a gallon of gas has risen 8 cents in the past week, and is currently averaging $3.27. That’s the highest price in seven years, according to the American Automobile Association , which tracks fuel prices nationwide using data provided by the Oil Price Information Service.
So, why is this happening?
Well, according to AAA spokesperson Andrew Gross, “The key driver for this recent rise in the price of gas is crude oil, which typically accounts for between 50% and 60% of the price at the pump. And last week’s decision by OPEC and its oil-producing allies to not increase production further only exacerbated the upward momentum for crude oil prices.”
Crude prices rose quickly following OPEC+, which comprises the Organization of the Petroleum Exporting Countries (OPEC), Russia, and their allies, choosing not to move forward with an agreement to produce 800,000 barrels per day in November. Instead, OPEC+ decided to maintain a previously agreed upon 400,000 b/d production increase.
“Last week saw oil prices advance to their highest in seven years, with a barrel of West Texas Intermediate crude oil surpassing the critical $80 per barrel level. The nation’s gas prices were also pushed to their highest since 2014, all on OPEC’s decision not to raise production more than it already agreed to in July,” said Patrick De Haan, head of petroleum analysis for GasBuddy. “The OPEC decision caused an immediate reaction in oil prices, and amidst what is turning into a global energy crunch, motorists are now spending over $400 million more on gasoline every single day than they were just a year ago.”
Additionally, De Haan said, “problems continue to relate to a surge in demand as the global economy recovers, combined with deep cuts to production from early in the pandemic.
“If Americans can’t slow their appetite for fuels, we’ve got no place for prices to go but up.”
Kailey E. Hunt covers breaking news and public safety in South Texas. Help support more local coverage with a subscription at caller.com/subscribe.