Gas prices are increasing again

These days, prices at the pump are much like your heart rate while approaching a longtime crush – going up.

According to data from AAA, the average gas price in the US hit $3.636/gallon yesterday. That marks a $0.04/gallon jump from the previous day – the largest since last June – and a more than $0.07/per gallon increase over the past week.

📈🤔 What’s behind the price increase?... Three words said religiously in every Econ 101 class around the world – supply and demand. Or to be more explicit: low motor gas inventories and refinery production below capacity means the existing supply can’t meet demand, driving prices higher.

• Total motor gasoline inventories fell to a level 7% below the five-year average for this time of year, per the latest Weekly Petroleum Status from the Energy Information Administration.
• Gas production is also down, with refineries operating at ~94% capacity, per EIA data. Recent issues at three major US refineries – one at a Phillip’s 66 location in New Jersey, one at a Marathon location in Texas, and one at an ExxonMobil location in Louisiana – contributed to this drop in production.

👀 Looking ahead… Supplies are expected to tighten even further due to ongoing production cuts from OPEC+. So if you’re passing a gas station, it may be a good idea to fill up the tank😬.