Why are gas prices up?

Why are gas prices up?
Published: Sep. 18, 2023 at 2:17 PM EDT
Email This Link
Share on Pinterest
Share on LinkedIn

LEXINGTON, Ky. (WKYT) - If you’ve filled up at the pump recently, you’ve likely noticed the price of gas is up from last week.

Nationally, the price per gallon is up about a nickel. In Lexington, the price per gallon is up by more than a dime.

According to GasBuddy, the average price of gas in Lexington has gone up more than 11 cents in the last week. AAA says there’s one main reason for this.

Oil is the largest component of gasoline. Whenever we see those oil prices go up, we can expect to see our gas prices go up,” said Lori Weaver Hawkins, AAA Bluegrass.

Weaver Hawkins says that with the OPEC+ nations announcing production cuts, oil prices are now up to nearly $90 a barrel.

“Usually, after Labor Day, we see our gas prices come down,” said Weaver Hawkins. “So, this is an unusual situation.”

GasBuddy reports that right now, the average price for gas in lexington is sitting at $3.54 per gallon. That’s 11.7 cents higher than last week.

“It’s always shocking when you start to get more than just a few cents week over week,” said Weaver Hawkins.

Chris Trower, the president of Diamond Landscapes, says in a given week, they go through upwards of 3,000 gallons of gas.

“Everything that we do from the lawn maintenance end has a component of gas,” said Trower. “We’re mowing. We’re using skid steers. We’re using weed eaters.”

Trower says their customers sign contracts with them. He says once that contract is signed, customers don’t want to see any fluctuation in price regardless of higher gas or material costs. He says they have no choice but to have wiggle room in their yearly budget.

“Most of our customers understand the nature of increasing costs,” said Trower. “Our contracts, since the start of COVID, are up 18%-22% depending on whether it’s heavily labor-based or materials-based. That’s not us making a single dime more than before COVID.”

While businesses navigate rising costs, AAA says there are some ways to help you get the best bang for your buck when it comes to gas. They say routine maintenance on your vehicle is one of the best things you can do.

“Make sure that you have proper tire pressure. That can affect your gas mileage. Those sorts of maintenance things can make a difference,” Weaver Hawkins said.

If you want to know before you go, you can always check out the AAA app or GasBuddy website to see where the cheapest gas is near you.

AAA also says we will be transitioning into the cheaper winter gas blends soon. That’s when people could really start to see the prices cool off.