ALBANY, N.Y. (NEWS10)- It’s not only heating, electricity, and grocery bills that are going up. Gas prices are also on the rise. The average price of a gallon of gas rose 5.7 cents from February 21 to February 28 in Albany, according to GasBuddy.
Capital Region gas stations averaged $3.81 a gallon Monday, the most expensive was $3.90 locally. Statewide the highest was $4.39 a gallon. The last time gas was over $4 in Albany was in 2012, GasBuddy said Thursday.
The price of regular gas in the Capital Region is creeping up to the $4 mark. But, in other parts of the state, some people may already be seeing it up over $4.
Prices for mid-grade and premium gas are already averaging above $4 in Albany. The average price for mid-grade gas in the state is $4.163, the average price for premium is $4.395, according to AAA. The statewide average for regular is $3.929, slightly above the national average of $3.728 for regular.
The reasons gas was over $4 a gallon in 2012 are some of the same reasons gas prices are currently high and continue to rise. When the price of gas spiked in 2012, Forbes said the rise could be attributed to five things:
- demand
- global politics
- speculation
- the seasons
- fuel-efficient cars
Why are gas prices so high now? More demand, less supply, and Russia’s invasion of Ukraine.
After the pandemic, demand for gas rose faster than production could keep up with. Because Russia is the world’s third-largest oil producer, the countries war with Ukraine will continue to cause instability in the market, according to Forbes.
“The Russian invasion of Ukraine has sparked high-level concern that oil production could eventually be stifled, or even sanctioned, from the world’s second-largest oil producer, leading to less supply as demand grows. That possibility has pushed up the national average price of gasoline considerably in the last week, and the situation could worsen at any time, keeping gas prices elevated for the foreseeable future,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
“In addition to the unstable situation with the Russian invasion, we’re also entering the time of year that seasonality pushes gasoline prices up by anywhere from 25 to 75 cents by Memorial Day. It’s simply looking like a perfect storm for motorists at the pump, with little to no relief anytime soon,” De Haan added.
The U.S. agreed, along with the International Energy Agency’s other 30 members to release 60 million barrels of oil to appease the market. Letting oil producers know there would be enough supply despite Russia’s war on Ukraine. Hopefully to eventually stabilize or decrease the cost of gas, according to the Associated Press.
