Rising oil costs bring gas prices along for the ride



(January 17, 2025) WASHINGTON, D.C. — Oil costs hovering around $80 a barrel have helped push the national average for a gallon of gas four cents higher since last week to $3.10. 


“Domestic gasoline demand is low, so why are pump prices creeping higher?  Look at the cost of oil,” said Andrew Gross, AAA spokesperson. “Global oil prices have surged due to strong winter heating fuel demand and new U.S. sanctions against Russia’s energy sector.

"Oil costs account for 56% of what you pay at the pump. So, more expensive oil leads to more expensive gas. But that said, there are still 26 states with averages below $3 a gallon for now.”
According to new data from the Energy Information Administration (EIA), gasoline demand fell from 8.48 million barrels a day last week to 8.32. Meanwhile, total domestic gasoline stocks rose from 237.7 million barrels to 243.6, while gasoline production popped last week, averaging 9.3 million barrels daily.

Today’s national average for a gallon of gas is $3.10, eight cents more than a month ago and three cents more than a year ago.

Quick stats

The nation’s top 10 most expensive gasoline markets are Hawaii ($4.54), California ($4.41), Washington ($3.90), Nevada ($3.66), Oregon ($3.50), Pennsylvania ($3.32), Alaska ($3.31), Illinois ($3.25), Washington, DC ($3.23), and Florida ($3.22).

The nation’s top 10 least expensive gasoline markets are Mississippi ($2.66), Texas ($2.68), Oklahoma ($2.70), Arkansas ($2.71), Louisiana ($2.76), Kentucky ($2.76), Kansas ($2.77), Alabama ($2.79), Missouri ($2.79), and Kentucky ($2.77).