The price at the pump in Delaware rose by a dozen cents a gallon during the past week, according to a report from AAA.
The price increase came as the spring driving season began and as OPEC producers announced production cuts.
Delaware ranked second in the nation last week in the weekly increase in the price at the pump. (See below).
According to AAA’s Fuel Price Finder, gas as low as $3.30 a gallon for regular was available at independent station/convenience stores in the Wilmington and Middletown areas. The Costco membership store near Christiana Mall, Newark, was also posting a $3.30 a-gallon price
| Timeframe | Regular | Mid-Grade | Premium | Diesel |
|---|---|---|---|---|
| Current Avg. | $3.485 | $3.930 | $4.188 | $4.072 |
| Yesterday Avg. | $3.485 | $3.934 | $4.198 | $4.074 |
| Week Ago Avg. | $3.365 | $3.807 | $4.073 | $4.037 |
| Month Ago Avg. | $3.263 | $3.682 | $3.950 | $4.105 |
| Year Ago Avg. | $3.991 | $4.457 | $4.707 | $5.037 |
OPEC’s announcement that it will cut production by over a million barrels per day surprised the oil market. Retailers act quickly on such news, even though inventories may reflect lower prices. Conversely, when oil prices drop, the daily decline is modest as more expensive gas and crude oil is in inventories.
In response to the news, crude immediately surged well above $80 a barrel, although it has since struggled to stay above that mark.
The price rise is bad news for the economy since it will undermine efforts to lower inflation. Oil prices had been a bright spot.
“The oil market has had a few days to digest the OPEC news and speculate about the reason. This has led to the price of oil stabilizing for now,” said Andrew Gross, AAA spokesperson. “But the cost of oil accounts for more than 50% of what we pay at the pump, so drivers may not catch a break at the pump any time soon.”
According to new data from the Energy Information Administration gas demand increased slightly from 9.15 to 9.3 million barrels last week. Meanwhile, total domestic gasoline stocks decreased substantially by 4.1 million barrels to 222.6 million barrels. Increased demand amid tighter supply has contributed to pushing pump prices higher. If demand continues to rise, pump prices will likely follow suit.
Today’s national average of $3.55 is 15 cents more than a month ago but 61 cents less than a year ago.
- Since last Thursday, these ten states have seen the largest increases in their averages: Ohio (+25 cents), Delaware (+16 cents), Maryland (+14 cents), Georgia (+12 cents), Oklahoma (+11 cents), Illinois (+11 cents), South Carolina (+10 cents), Wisconsin (+10 cents), Minnesota (+10 cents) and Washington, D.C. (+10 cents).
Earlier in the week, crude prices spiked after the Organization of Petroleum Exporting Countries and its allies, including Russia, collectively known as OPEC+, announced it would cut production by 1.6 million barrels starting next month for the remainder of 2023. Additionally, the EIA reported that total domestic, commercial crude inventories decreased by 3.7 million barrels to 470 million barrels last week.
