Experts Warn Gas Prices Could Rise Even More
Rapidly rising gas prices have broken the $3.00 a gallon level in Alabama. The price at the pump for regular unleaded jumped from $2.97 yesterday to $3.01 today and continues to rise. That could make those spring break trips costly.
A week ago, the average gas price across Alabama was $2.64 before it shot up 11 cents overnight. One month ago, you paid $2.56 and a year ago a fill-up cost $2.73 a gallon.
In West Alabama, motorists in Perry County are seeing gas prices at $3.19, the highest in the region. Only one county in West Alabama is paying below three dollars for a gallon. That is Walker County at $2.98, but that is expected to rise above the $3.00 mark by tomorrow. Gas in Tuscaloosa County is currently averaging $3.04.
As quickly as the price is rising in Alabama and across the United States, it is climbing even faster abroad. The price shocks were felt even more heavily in Europe and Asia, markets that rely more heavily on energy supplies from the Middle East.
The Iranian blockade of the Strait of Hormuz has reduced the passage of massive oil tankers since Iranian forces fired on tankers recently.
According to Triple-A the conflict in the Middle East and how long it might last, has sent crude oil prices higher to the mid $70/barrel range. The recent increase puts the national average of $3.41 well above the national average of $3.10 a gallon one year ago.
The Middle East Conflict has created a perfect storm for gas prices. Springtime typically sees higher gas prices as gasoline demand rises and summer-blend gasoline production begins. Combined with the uncertainty of military action in the Middle East, fuel expert Patrick De Haan, head of petroleum analysis at GasBuddy, in a statement on the company's website, sees a continued upward trend.
“Looking ahead, markets are now reacting to the U.S.–Iran attacks, which have elevated geopolitical risk premiums even in the absence of immediate supply disruption. Oil prices have firmed as traders assess the potential for further escalation, and while fundamentals such as inventories and refinery activity remain important anchors, the risk of broader instability— particularly involving key transit routes— has injected fresh uncertainty into energy markets. In the week ahead, gasoline prices are likely to face heightened upward pressure."
De Haan points out, the last time the national average made a similar weekly jump was back in March of 2022 during the start of the Russia/Ukraine conflict.
Tuscaloosa Thread will continue to regularly track gas prices.
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