Average gasoline price breaks $5
The average price per gallon of gasoline has topped $5 in Butler County, just a week after residents saw some stations begin to charge that much.
According to AAA Tuesday, the average price was $5.038 per gallon in Butler County.
Gasoline prices in Pennsylvania remain higher Tuesday than the national average, which has reached record highs this week.
The national average price per gallon Tuesday was $5.016, which matched the record high set Monday, according to the AAA.
The average price in the state on Tuesday was $5.068 per gallon, reflecting a slight decrease from the highest recorded average of $5.071 that was set on Sunday, according to AAA.
A.J. Lesney, a retiree from Sarver, said he has been tracking local gas prices and noticed that a few gas stations are charging $4.99 a gallon while most charge $5.09 or more.
He said he believes gas stations that are part of large companies can offer lower prices because those companies buy gas in large quantities for a little less than smaller companies.
Despite some variations, prices are higher than ever and likely to continue rising, he believes.
“We may hit $6 by the end of July the way things are going,” Lesney said.
Rising crude oil prices and demand are keeping prices high, said AAA spokesman Jim Garrity.
Demand is also increasing even though gas costs nearly $2 more per gallon than it did a year ago, he said.
“Pent-up demand. People want to travel,” Garrity said.
Demand isn’t expected to decrease until the summer vacation season ends and schools reopen in September, he said.
It is more difficult to predict changes in crude oil prices.
“Crude oil is the main ingredient of gas. It’s 50 to 60 cents of the cost of every gallon,” Garrity said. “The only way to substantially lower it is for crude prices to drop.”
The crude oil market is volatile as many countries have stopped importing oil from Russia following its invasion of Ukraine, and OPEC is trying to replace that supply, he said.
Demand for crude is expected to increase as China emerges from a COVID-19 lockdown, according to AAA.
Another factor in rising crude costs is a decrease in domestic storage. Citing a U.S. Energy Information Administration report, AAA said crude stock increased by 2.1 million barrels to 416.8 million last week, but total storage is 12% less than a year ago.
The price of crude was $120 a barrel as of Monday, rising from $100 to $110 in May. The average cost of crude was $68.17 in 2021 and $39.68 in 2020.
Consumers should prepare for high prices instead of hoping for a decrease, Garrity said.
One way to prepare is to take steps to reduce daily gas usage to save money for vacation and other summer travel, he said.
Average gas prices in the state were $4.988 a week ago, $4.595 a month ago and $3.179 a year ago, according to AAA.
Diesel prices have slightly decreased to an average of $6.187 per gallon from $6.328, the record average high that was set on May 18.
The average diesel price was $6.178 a week ago, $6.274 a month ago and $3.545 a year ago, according to AAA.
