Gas prices to remain high through 2021 and 2022 may be higher; heating bills increase, too

National

(Getty images)

TRENTON, N.J. (AP) — Gas prices have jumped up again across the nation, due in large part to high crude oil prices, analysts said.

The national average price for a gallon of regular gasoline was $3.30, up four cents from last week. Drivers were paying $2.17 a gallon on average a year ago at this time.

Analysts say the price of crude oil, which typically accounts for 50 to 60 percent of the price at the pump, closed above $80 per barrel this week for the first time since 2014 — and that is twice what it was at this time last year.

Industry expert Neil Beveridge of Berstein said the increase in oil demand as the world reopens after Covid and supply issues could trigger exceptional prices.

Last week’s storage level is nearly 13 percent lower than the level at this same time last year. Given supply concerns, the market continues to bolster prices higer because of tight supply.

According to AAA, the worldwide surge in oil is also expected to impact home heating bills this winter, too. According to federal analysts, the Midwest could get hit exceptionally hard with increases as much as 44% for natural gas and 33% for heating oil.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending Stories