Gas prices are currently higher than they were a year ago in 26 out of 50 U.S. states, according to the latest data shared by the American Automobile Association. On Monday, the AAA also reported the first rise at the national level on a year-over-year basis since late 2023.
The cost of gas, which contributed heavily to the rise of inflation between 2022 and 2023, has recently been climbing across the country, raising concerns among investors that the Federal Reserve might hold off on cutting interest rates. The national average cost of regular gas on Tuesday, March 19 was $3.489, according to AAA, up from the $3.394 average of a week ago and up from the $3.446 average of a year ago.
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Gas prices have been sliding since December 2023, but on March 18, they reached their highest level since Halloween: $3.47 a gallon, up from $3.45 a year before.
According to AAA experts, this increase is due to rising oil prices, which have gone over the $80 per barrel mark and have, in turn, driven up the cost of gas at the pump.
It's also quite common for gas prices to go up as the weather gets warmer, and drivers are keen to travel more between March and April before peaking in June.
"This is the time of year we normally see pump prices start to rise," said AAA spokesperson Andrew Gross in a press release last week. "And while prices have been rather pokey so far, they should begin to accelerate and move higher very soon."
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Patrick De Haan, head of petroleum analysis at GasBuddy, commented on the rising gas prices saying he expected this trend to continue.
"With oil prices also at their highest since November, we'll likely keep seeing #gasprices rise. For now, there's enough coming in the pipeline for us to get to ~$3.60/gal," he wrote on X, formerly Twitter, adding that 90 percent of the increase was "seasonal."
"Summer blend, same time demand is rising (seasonal) and refinery maintenance," he wrote.
"Our anticipated range for the national average for March was $3.19-$3.58, and for April it rises to $3.37-$3.67/gal, so more increases are likely," he added in another post. "But the rise was very much expected, and is right on target for my expectation. No major deviations yet seen coming."
"Most Americans continued to see average gasoline prices march higher last week. The reason is the season: gasoline demand is rising as more Americans are getting out, combined with the summer gasoline switchover, which is well underway, and continued refinery maintenance," De Haan told Newsweek in a statement.
"The madness should slow down in the next few weeks as we've seen positive data that refinery output is starting to increase, a sign that the peak of maintenance season could be behind us," he continued.
"In some positive news for Midwest motorists, the BP refinery in Whiting, Indiana, that can process 440,000 barrels of oil per day is finally back to normal operations for the first time since an electrical failure happened in early February."
For now, gas prices will likely continue to trend higher, De Haan said, "but the fever may break soon. When it comes to diesel, the news has been good—above average temperatures have lowered heating oil demand, and average diesel prices are on the cusp of falling back below $4 per gallon."
Newsweek contacted AAA for comment via email on Monday morning.
The average cost of regular gas climbed up in the following states between March 19, 2023, and March 19, 2024, according to AAA data:
Alabama ($3.18 from $3.09)
Arizona ($3.71 from $3.97)
Arkansas ($3.11 from $3.05)
California ($4.92 from $4.85)
Connecticut ($3.38 from $3.29)
Delaware ($3.29 from $3.24)
Florida ($3.52 from $3.46)
Georgia ($3.36 from $3.22)
Illinois ($3.78 from $3.64)
Indiana ($3.52 from $3.50)
Iowa ($3.24 from $3.20)
Kansas ($3.16 from $3.05)
Louisiana ($3.15 from $3.07)
Maryland ($3.51 from $3.30)
Michigan ($3.64 from $3.45)
Missouri ($3.21 from $3.05)
Montana ($3.51 from $3.23)
Nebraska ($3.28 from $3.22)
New Jersey ($3.28 from $3.27)
North Dakota ($3.31 from $3.26)
Oklahoma ($3.13 from $3)
Oregon ($4.10 from $3.88)
South Carolina ($3.23 from $3.13)
Tennessee ($3.16 from $3.10)
Virginia ($3.38 from $3.23)
Washington ($4.33 from $4.24)
Wisconsin ($3.33 from $3.25).
The average price of gas slid down in these states between March 19, 2023, and March 19, 2024, according to AAA:
Alaska ($3.82 from $3.81)
Arizona ($3.71 from $3.97)
Colorado ($3.07 from $3.78)
Hawaii ($4.70 from $4.82)
Idaho ($3.44 from $3.63)
Kentucky ($3.14 from $3.17)
Maine ($3.31 from $3.41)
Massachusetts ($3.27 from $3.28)
Minnesota ($3.25 from $3.28)
Mississippi ($3.05 from $2.99)
Nevada ($4.21 from $4.27)
New Hampshire ($3.21 from $3.26)
New Mexico ($3.28 from $3.37)
New York ($3.38 from $3.44)
North Carolina ($3.13 from $3.21)
Ohio ($3.29 from $3.31)
Pennsylvania ($3.59 from $3.60)
Rhode Island ($3.24 from $3.27)
South Dakota ($3.25 from $3.33)
Texas ($3.13 from $3.03)
Utah ($3.44 from $3.81)
Vermont ($3.32 from $3.43)
West Virginia ($3.36 from $3.37)
Wyoming ($3.14 from $3.39).
California, Hawaii, Washington, Nevada, and Oregon had the most expensive gas, while Mississippi, Colorado, Arkansas, Oklahoma, Texas, and North Carolina had the cheapest gas.
Update 3/21/24, 5:00 a.m. ET: This article was updated to include a comment from Patrick De Haan.
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Giulia Carbonaro is a Newsweek Reporter based in London, U.K. Her focus is on U.S. and European politics, global affairs ... Read more
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