Gas prices are likely going to rise again, experts say. Here’s what you need to know
Gas prices are likely going to rise again.
The Organization of Petroleum Exporting Countries (OPEC) announced Wednesday, Oct. 5, its decision to cut oil production by 2 million barrels per day.
Experts warn that this move will likely result in higher prices at the pump. Here’s what you need to know.
How high will gas prices go?
It was a tumultuous summer for gas prices.
Prices hit an all-time high June 14, when the national average reached $5.01, according to AAA’s data. Since then, prices have tempered, declining for 99 days straight until Sept. 21.
As of Oct. 5, the average price of a gallon of gas was $3.831, up from the previous week’s average of $3.765 and September’s average of $3.786.
Gas prices and oil prices are linked, so as oil production slows and prices rise, gas prices will rise, too, experts warn.
In the United States, consumers could see an impact of roughly 15 to 30 cents per gallon as a result of OPEC’s decision, GasBuddy analyst Patrick De Haan estimated.
Other factors are impacting gas prices in the United States right now, too, though, which is causing a wide range of prices across the country, according to Andrew Gross, a AAA spokesperson.
“The regional differences in gas prices are stark at the moment, with prices on the West Coast hitting $6 a gallon and higher, while Texas and Gulf Coast states have prices dipping below $3 in some areas,” Gross said in an Oct. 3 news release. “At least six California refineries are undergoing maintenance, and there is limited pipeline supply to the West Coast from locations east of the Rockies.”
These influences might work to counter-balance the impact of rising oil prices though, De Haan told Axios.
“Once those issues are addressed, the decreases will likely overpower oil prices rising,” De Haan said.
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