Louisiana motorists are seeing gas pump prices creep up at a pace faster than the U.S. average, gasoline web site GasBuddy.com says. But one expert tells The Advertiser that’s because Louisiana prices have more room to travel northward.
Average retail prices rose by 14.7 cents in the week ending Sunday, with an average pump price of $2 in Louisiana. GasBuddy conducts a daily survey of 2,436 gas outlets in the state. Prices had increased more than a penny in Louisiana by Monday afternoon.
Nationally, average gas prices rose by 12.6 cents through Sunday to $2.17 a gallon, senior petroleum analyst Patrick DeHaan says. Louisiana ranked No. 14 among states for fastest movers in gas prices.
Typically, DeHaan says, pump prices in states with lower gasoline prices rise more quickly than in states that already have higher pump prices.
“Everyone is going to see some increases,” DeHaan says. “There is just less margin for increases in states with higher gas prices.”
Those prices may rise by 30 to 60 cents for gasoline between February and May, which is typical, DeHaan says. Last year, he notes, gas prices rose 30 cents in that time frame. This year there are more “moving pieces and parts” in the cost of gasoline, including what action OPEC leader Saudi Arabia chooses in producing oil, DeHaan says.
In the face of increased U.S. oil production and declining global demand last autumn, the Saudis chose to keep production steady rather than reducing production, an action that most oil analysts said flooded the oil market and drove down prices.
Nonetheless, average gas prices in the state Sunday were $1.08 lower than a year ago, 2.4 cents higher than a month ago. Read the full story.
