(December 28, 2021) WASHINGTON, D.C. — Gasoline prices fluctuated over the past few days as fears of an omicron-driven economic slowdown were countered by news of a severe fire at a major oil refinery. Last Thursday, four people were injured when a fire erupted at the Exxon Mobil Corp refinery in Baytown, Texas. The plant is one of the largest refining and petrochemical facilities in the United States.

If the damage forces the plant offline for long, the disruption could negatively affect gasoline prices. As a result, the recent steady decline in pump prices has slowed, with the national average for a gallon of gas falling two cents on the week to $3.28.

“We should learn more in the coming days about the extent of the damage to the refinery,” said Andrew Gross, AAA spokesperson. “If it can be back up and running in a few weeks, the effect could be minimal.  But if repairs take months, consumers could begin seeing higher prices again at the pump.”

According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks increased by 5.5 million barrels to 224.1 million barrels last week. On the other hand, gasoline demand decreased from 9.47 million barrels a day to 8.99 million barrels a day. Typically, falling demand and increased supply would support larger drops in pump prices, but fluctuations in the price of crude oil have helped to keep pump prices elevated. If crude prices continue to climb, pump prices will likely follow suit.

Today’s national average of $3.28 is 11 cents less than a month ago and $1.03 more than a year ago.

Quick stats

 The nation’s top 10 largest weekly decreases: South Dakota (−6 cents), New Mexico (−5 cents), Michigan (−4 cents), Illinois (−4 cents), Utah (−4 cents), Ohio (−4 cents), Arizona (−4 cents), Oklahoma (−4 cents), West Virginia (−4 cents) and Wyoming (−3 cents).

The nation’s top 10 most expensive markets: California ($4.66), Hawaii ($4.32), Washington ($3.85), Nevada ($3.83), Oregon ($3.76), Alaska ($3.69), Arizona ($3.65), Idaho ($3.58), Pennsylvania ($3.53) and Utah ($3.51).