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Getting Answers: Why are gas prices rising?

mike moncla.jpg
Posted at 9:30 PM, Mar 06, 2021
and last updated 2021-03-06 23:08:03-05

LAFAYETTE, La. — Gas prices in the Gulf area are the highest they’ve been since last January, according to the U.S. Energy Information Administration.

Several factors are causing this increase – such as the weather, the approaching summer season, and the price per barrel of crude oil.

Mike Moncla, president of the Louisiana Oil and Gas Association, says it all comes down to supply and demand.

“When you’ve got a push back on production and people are hitting the roads again, there’s going to be more demand than supply,” he said. “It's going the other way.”

The push backs vary, and most of them are the same year after year. However, the recent winter weather impacted the price of gasoline even further.

Because of the winter freeze’s impact on Texas and surrounding areas, the EIA says U.S. refineries were working at 83 percent capacity. After the freeze, that dropped to 56 percent -- which impacts the supply.

Additionally, the price you pay at the pump is directly impacted by crude oil price before it gets refined. The price per barrel has been on an upward trend too.

Finally, gasoline blends for the summertime cost more to produce and demand is higher due to traveling. That’s why, with the exception of 2020, gas prices typically rise between January and May.

Some ways you can save money when pumping gas include using websites or apps like GasBuddy. They track the prices of gasoline in your area and can help you determine where to pump gas. Additionally, several gas stations offer rewards programs that can earn you points by fueling there.

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