The bad news is that gasoline pump prices are starting to move higher.
The good news is where the price increases are occurring depends. Prices were a touch lower in such states as Texas, Washington, New York, Mississippi and Illinois. States showing higher prices included California, Pennsylvania, Vermont, Montana, Connecticut and Iowa.
The national average price of unleaded gasoline was $3.823 a gallon on Saturday, according to the American Automobile Association. That’s up from $3.815 on Sept. 2.
It should not surprise. Crude oil was up 2.3% for the week at $87.51 a 42-gallon barrel on Friday and is up 23.4% in the third quarter alone in what’s proved a volatile year. For the year, crude is up 9%.
AAA’s average price is still below the 2023 peak of $3.875 a gallon, reached on Aug. 17 in the peak of the summer driving season. And the price is way below the peak price of $5.016 a gallon on June 14, 2022, when inflation pressures were more pronounced than now.
After the Aug. 17 high, AAA’s average fell 17 out of the next 20 days. Saturday’s increase was just the second in a row.
Historically, pump prices fall back in the late weeks or summer and as the fall deepens.
One reason is that summer travel is ending, and drivers will stay close to home.
In addition, refiners often substitute cheaper ingredients into their gasoline blends as the fall deepens and temperatures drop. Butane, a cheap natural-gas derivative, is used more because it’s not as volatile in cold weather.
The highest statewide gasoline prices are in California, at $5.412 a gallon, up 10 cents from a week ago. The most expensive gas is in isolated Mono County at $6.27.
The lowest prices are in Mississippi at $3.27 a gallon, down from $3.301 a week ago with the lowest county price in Jones County at $3.135. States along the Gulf Coast have some of the lowest prices because so much gas is refined there and taxes are lower.
In fact, statewide prices in Texas, Mississippi, Alabama and Georgia fell slightly on Saturday from a day earlier.
Rising oil prices also boosted oil stocks. Chevron (CVX) – Get Free Report was up 1.8% on the week and 6.3% for the third quarter. Exxon Mobil (XOM) – Get Free Report added 1,8% last week and is up 7.8% in the third quarter.
The Energy Select SPDR exchange-traded fund (XLE) – Get Free Report, which includes the biggest energy companies, was up 1.44% on the week, tops among ETFS that track the sectors of the Standard & Poor’s 500 Index. It’s up 13.4% for the quarter but just 5.2% for the year.
