Is $Three a gallon gasoline in our future?

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Delaware gas price rose by three cents a gallon during the past week due to a combination of rising crude prices, tightening gas supplies, and increased gas demand, Wilmington-based AAA-Mid Atlantic reported.

The increase has led to speculation that gas prices could rise to $3 a gallon.

Sam’s Club in Dover reported a $2.41 gas price, the lowest in the state. The one-time cost leader Costco, located near Christiana Mall, posted a $2.50 a gallon price.

The $2.66 gas price in Delaware is nearing the $2.75 threshold that, by some accounts, gains the attention of drivers.

According to new data from the Energy Information Administration (EIA), total domestic gas stocks decreased, and gasoline demand increased last week. If these trends continue alongside higher crude prices, drivers can expect incremental price increases — at least nickel — at gas stations in March.

CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline (*indicates record high)

3/5/21

Week Ago

Year Ago

National

$2.75

$2.69

$2.40

Pennsylvania

$2.96

$2.93

$2.61

Philadelphia
(5-county)

$2.94

$2.89

$2.59

South Jersey

$2.85

$2.79

$2.36

Delaware

$2.66

$2.63

$2.28

Crude Oil

$66.09
per barrel
(Fri. 3/5/21 close)

$61.50
per barrel
(2/26/21)

$41.28
per barrel
(3/6/20)

At the close of NYMEX trading on Friday, West Texas Intermediate (WTI) crude oil closed at $66.09 per barrel, $4.59 higher than last Friday’s close.

Crude prices increased this week after the Organization of the Petroleum Exporting Countries (OPEC) decided with its allies, including Russia, to maintain existing crude production cuts of seven million b/d through April.

Additionally, Saudi Arabia — a member of OPEC — agreed to extend its voluntary production cut of one million barrels per day by one month. Crude prices have increased despite EIA’s latest weekly report revealing that total domestic inventories grew last week.

“Local drivers continue to feel the pain at the pump as gas averages continue to creep closer to the $3 mark,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “AAA forecasts the national gas price average to hit at least $2.80 in March. Barring hurricane season, March may bring the highest pump prices of 2021.”

To check out prices in your neighborhood, log on to AAA’sFuel Price Finder(http://www.AAA.com/fuelfinder).

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