Gas Prices Are Up 25 Cents a Gallon Thanks to Extreme Heat — When Will They Go Back Down?
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Josephine Nesbit
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Ashley Almario
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Gas prices are on the rise again. Nationwide, gas prices averaged $3.82 per gallon as of Aug. 3 — up 29 cents since the previous month, according to AAA.
Gas prices are lower than they were at this time in 2022 when energy costs skyrocketed following Russia’s invasion of Ukraine. Now, experts point to extreme heat and oil production cuts, AP News reports.
“Usually it takes a hurricane to move prices that much,” said AAA spokesperson Andrew Gross, reported AP News. He then said the rise is especially interesting as “fewer people are fueling up” their cars this summer compared to previous years.
In the U.S., gas prices are dependent on the price of crude oil. OPIS global head of energy analysis Tom Kloza told AP News that West Texas Intermediate crude prices, the U.S. benchmark, have stayed above $80 per barrel — a $12 jump since July 3.
Kloza said there have also been crude oil supply cuts from major producing countries. In July, Saudi Arabia started reducing how much oil it sends to the global economy by one million barrels per day.
The higher summer temperatures are also to blame for rising gas prices. Globally, June was the hottest June on record. July was so hot that scientists said it was the hottest month on record before the month even ended, according to a separate AP News report. Phoenix experienced the longest stretch of days when the temperature didn’t go below 90 degrees, and El Paso, Texas, had 44 days of 100 degrees.
Experts warn we can also expect a hotter-than-normal August and September, AP News added.
“While the heat may be keeping people home, it also keeps refineries from making refined product,” Gross explained to AP News. Refineries are typically designed to operate between 32 and 95 degrees Fahrenheit. When temperatures rise, production cuts are made for safety purposes, which constrains supply.
We don’t know what gas prices will look like in the next few weeks, but Kloza says we may see some relief from the heat as we go into fall. However, the risk of hurricanes can lead to power losses at refineries.
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