Gas prices up a penny this week in Lubbock

Gas prices up a penny this week in Lubbock

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The average gas price in Lubbock climbed a penny this week, to $2.37 per gallon of regular unleaded. Statewide the average price climbed eight cents, to $2.46. The national average is up seven cents, to $2.75.

A year ago we were paying $2.61 in Lubbock.

Here is more information from AAA Texas:

The statewide gas price average in Texas is $2.46 for a gallon of regular unleaded fuel, according to the AAA Texas Weekend Gas Watch. That price is eight cents more than on this day last week and is 19 cents less per gallon compared to this day last year. Of the major metropolitan areas surveyed in Texas, drivers in El Paso are paying the most on average at $2.76 while drivers in Amarillo and Brownsville/Harlingen are paying the least at $2.31 per gallon. The national average price for a gallon of regular unleaded is $2.75, which is seven cents more than this day last week and 11 cents less than the price per gallon at this same time last year.

For the second straight week, gas prices increased in nearly all Texas cities surveyed by AAA. While prices recently began an upward swing, drivers in the Lone Star State will still save at the gas pump compared to Independence Day last year.

“While gas prices are increasing, Texas drivers will still pay less for gas this Independence Day compared to one year ago,” said Daniel Armbruster, AAA Texas spokesperson. “The statewide average is 19 cents cheaper per gallon today than compared to this time last year. Drivers can save on fuel by downloading the AAA mobile app to help them find the cheapest gas in their area.”

 

Factors driving up gas prices:

Crude oil prices: West Texas Intermediate (WTI) was priced as low as $51.13 in mid-June, but has since jumped more than $8 to land as high as $59.43. Crude accounts for as much as 60% of the retail gasoline price.
Supply: The Energy Information Administration (EIA) reports total U.S. stocks at 232 million barrels for the week ending June 21, which is the lowest June stock level seen since 2015.

Demand: Demand remains robust for peak summer driving season at a four-week average of 9.6 million barrels per day. EIA reports gasoline stocks drew down for a second week in its latest report. This trend isn’t likely to stop this week, especially with 41.4 million Americans expected to hit the road for the Independence Day holiday.

Philadelphia Energy Solutions (PES): Last week, PES announced that they will permanently close the South Philadelphia refinery this month, which is the oldest and largest refinery on the East Coast. The announcement came following a June fire and explosion at the refinery, which produces 335,000 barrels of crude per day (42 U.S. gallons per barrel). While gasoline stocks from Canada, neighboring refineries, and the Colonial Pipeline will help backfill supply, retailers will likely face increased transportation costs which will drive up prices in the Northeast and surrounding regions.

Organization of the Petroleum Exporting Countries (OPEC): OPEC and its partners will meet today and tomorrow in Vienna and are likely to extend the current production reduction agreement of 1.2 million b/d through the end of the year, which could push crude oil prices more expensive.

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