Gas prices rise when demand rises higher than oil production

Posted: Mar 1, 2021 / 10:13 AM ESTUpdated: March 1, 2021 / 10:40 AM EST

LANSING, me. (WLNS) – Have you noticed that gas prices are rising?

If so, you are right.

According to GasBuddy’s daily poll, Lansing gas prices rose 14.7 cents per gallon over the past week, averaging $ 2.75 / g today.

The survey collects data from 177 stations in Lansing.

Lansing gas prices are 41.1 cents per gallon higher than a month ago and 51.4 cents per gallon higher than a year ago.

According to GasBuddy price reports, the cheapest station in Lansing is now priced at $ 2.58 / g while the most expensive is at $ 2.89 / g, a difference of 31.0 cents per gallon.

The lowest price in the state today is $ 2.48 / g while the highest is $ 2.99 / g, a difference of 51.0 cents per gallon.

The national average price for gasoline has risen 7.5 cents per gallon over the past week and averages $ 2.72 / g today.

The national average is up 30.3 cents per gallon from the previous month and is 30.6 cents per gallon higher than a year ago.

Historic gasoline prices in Lansing and the national average for ten years:
March 1, 2020: $ 2.24 / g (US average: $ 2.41 / g)
March 1, 2019: $ 2.51 / g (US average: $ 2.42 / g)
March 1, 2018: $ 2.58 / g (US average: $ 2.54 / g)
March 1, 2017: $ 2.53 / g (US average: $ 2.32 / g)
March 1, 2016: $ 1.72 / g (US average: $ 1.76 / g)
March 1, 2015: $ 2.46 / g (US average: $ 2.42 / g)
March 1, 2014: $ 3.74 / g (US average: $ 3.45 / g)
March 1, 2013: $ 3.91 / g (US average: $ 3.77 / g)
March 1, 2012: $ 3.82 / g (US average: $ 3.74 / g)
March 1, 2011: $ 3.43 / g (US average: $ 3.37 / g)

Neighboring areas and their current gas prices:
Ann Arbor – $ 2.76 / g, up 11.7 cents per gallon from $ 2.64 / g last week.
Flint – $ 2.74 / g, up 13.9 cents per gallon from $ 2.60 / g last week.
Grand Rapids – $ 2.76 / g, up 15.6 cents per gallon from $ 2.60 / g last week.

Why has the gas price increased?

“Gas prices continued to rise last week after a cold-weather shutdown in Texas, but in the future the effects of the cold are likely to have run their course. However, some other factors will increase their impact on gas prices again, including the fact that gasoline demand continues to rise, ”said Patrick De Haan, Head of Petroleum Analysis at GasBuddy.

The demand is currently greater than the oil production

“According to Pay with GasBuddy data, total gasoline needs rose to their highest level since the pandemic began last week as COVD-19 cases continue to decline and Americans refuel.” On the supply side, the number of oil platforms active in the US is almost 50% lower than a year ago, which has a huge impact on prices. Put simply, demand is recovering much faster than oil production, which is why oil prices have risen. This week, OPEC will meet hopefully to increase oil production to moderate the price hike. But will they increase oil production enough to meet the growing appetite of a world economy where oil demand has skyrocketed? We have to wait and see. “

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