Fuel prices have started rising again despite signs of slowing in December

Although there was a small decline in fuel prices in December, they are now significantly higher than at the start of the year in the US. 

A month ago, the average price for a gallon of regular gas was $3.21. The average price is now $3.48, with some experts now fearing that prices could reach a new all-time high. 

However, others believe that prices have already reached their peak. Patrick DeHaan, head of Petroleum Analysis at GasBuddy tweeted “The national average (is) now 1.1 cents higher than a week ago at $3.48/gal. With oil, gasoline and distillate values sagging, we may soon see week-on-week drops in average prices.”

The cost of food, gas, electricity and fuel have skyrocketed in the last year due to supply issues, the war in Ukraine, and the ongoing effects of the Covid-19 pandemic. 

Which states have the highest prices?

The average price per gallon in the US is now $3.475 per gallon, and the most significant price increases have been in Colorado (+18 cents), Florida (+15 cents), and Kansas (+15 cents).

According to the AAA, the most expensive US state to buy fuel at the moment is Hawaii, with prices reaching $5 a gallon a month ago but falling slightly to $4.93 in February. 

The second most expensive was California, with prices at $4.57 a gallon and rising between the end of December and the beginning of February. 

Texas was the cheapest place to buy fuel this month, with prices being around $3.12 a gallon, 27 cents higher than a month ago.

However, late winter and early spring are typical times with reduced fuel production, which can lead to price increases, depending on demand. 

According to Andrew Gross, AAA spokesperson: “January’s weather was relatively mild in much of the nation, which led to more drivers hitting the road. However, a return of wintery conditions in February may see a revival of seasonal driving patterns. But with the cost of oil stubbornly hovering around $80 per barrel, drivers probably won’t catch a big break at the pump over the next week or two.”