Gas prices climb to year high

Analysts blame conflicts, reduced inventories, supply problems

The average U.S. price of regular unleaded gasoline has climbed above levels recorded a year ago.

The price rose to $3.59 on April 7, about one cent more than the national average on April 7, 2023, according to AAA. The price was up six cents from a week ago and 19.6 cents from a month ago.

The cost of premium, diesel, and E85 fuel, which contains higher amounts of ethanol designed for usually newer engines, were still below the prices from a year ago.

So why are gas prices continuing to rise? Analysts blamed the Ukrainian war, Middle East conflicts, reduced inventories, continued supply challenges, and the onset of warmer weather that increases demand.

"We're getting into summer driving season," Regina Mayor, global head of clients and markets for KPMG, told Yahoo Finance. "We expect gasoline demand to continue to grow. That will drive prices up in the short term."

Ways to save on fuel costs

More Americans are using apps to help find lower-priced stations. Some stations offer 88-octane gas with up to 15 percent ethanol — regular unleaded has up to 10 percent ethanol — at about 20 cents a gallon lower prices. The E85 fuel has ethanol percentage of between 51 percent and 83 percent.

Using the higher enthanol fuel will reduce gas mileage slightly, federal officials say.

Gasoline prices climbed to levels above a year ago.Photo byKevin Shay

Gas prices change

Date ............. Regular ..... Premium ..... Diesel ..... E85
4/7/24 ........... $3.593 ..... $4.380 ..... $4.049 ..... $2.929
3/31/24 ......... $3.535 ..... $4.313 ..... $4.031 ..... $2.881
3/7/24 ........... $3.397 ..... $4.176 ..... $4.058 ..... $2.769
4/7/23 ............ $3.581 ..... $4.308 ...... $4.208 ...... $2.981
Source: AAA