After nearly a year of cheaper year-over-year gas, national prices are on course to rise above 2020 levels this week, according to AAA.
Currently sitting at $2.42 per gallon, the national gas price average is only 5 cents cheaper than this time last year and has already surpassed 2019 prices.
However, Colorado’s $2.33 per gallon price is 20 cents from a year ago.
“We’ll still enjoy some savings in Colorado for some time yet, but rising crude oil prices are going to increase what you pay at the pump, plain and simple,” said Skyler McKinley with AAA.
Denver gas prices are lower than the state average at $2.27 per gallon, up 7 cents from last month but down 19 cents from last year. Year-over-year prices are 18 cents cheaper in Colorado Springs and 23 cents cheaper in Boulder and Longmont.
The only Colorado city to experience an annual increase in gas prices is Pueblo, with an average price of $2.43 per gallon compared to $2.42 this time last year.
Nationally, average gas prices have increased by 2 cents this week and 17 cents this month, climbing despite a recent decrease in demand.
According to the Energy Information Administration, demand for gasoline declined from 8.11 million barrels a day to 7.83 million over the last week. Demand for total refinery utilization also decreased from 82.5% to 81.7%.
The decrease in demand resulted in a 2.4 million barrel increase in gasoline supply.
Though increased supply would usually decrease gas prices, sustained crude oil prices are pushing prices up. Crude has priced between $52 and $53 per barrel for three straight weeks, steady price points not seen since February 2020.
In addition, total domestic crude inventories declined by 9.9 million barrels last week, the largest weekly decline since July 2020.
“The continued tightening of international production, combined with a renewed American focus on alternative fuels — and a gradual increase in demand amid the roll-out of COVID-19 vaccines — are sure to push prices upward,” McKinley said.
“It isn’t a question of if we return to pre-2020 prices, it’s when.”
This content was originally published here.
