Gas Prices Spike 17 Cents Per Gallon This Month

By: Michael Stevens - Staff Writer
Published: Feb 27, 2021

Gas Prices Spike. Gas prices are soaring because of middle east tension that spike the pump by 17 cents. Sadly, analysts expect prices to continue higher, following a sharp rise in the cost of crude oil.

The national average price for a gallon of regular gas rose 4.6 cents to $3.33, motorist group AAA said Saturday. That marks the fourth day in a row that prices have risen, and brings the national average to the highest level since October 2008. Gas prices were highest in Hawaii, where drivers paid $3.761 a gallon, on average. Wyoming had the lowest gas prices at roughly, $3.032 a gallon. Tom Kloza, chief oil analyst at the Oil Price Information Service, said gas prices’ 6-cent jump reported Friday was the largest one-day increase since at least 2008.

“This will definitely be the most expensive February ever,” he said, adding that gas prices are typically lower during the winter months.

The jump in pump prices follows a surge in prices for crude oil, the main ingredient in gasoline. Oil prices spiked 9% last week, a week that included a high of $103 a barrel — the highest since October 2008. Analysts expect prices to continue rising over the next few days, since gas prices typically lag trends in the oil market.

The spike in oil last week could translate to an increase in gas prices of 37 cents per gallon in the coming weeks, according to Moody’s Analytics economist Chris Lafakis. He estimates that for every $1 increase in the price of oil, retail gas prices typically rise 2.5 cents a gallon. Economists warn that an energy price shock could hurt the economic recovery in the United States.


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