AUSTIN (Talk1370.com) -- Drivers across Austin are paying more at the pump this week as rising crude oil prices are weighing on gasoline prices, according to the latest AAA Texas Weekend Gas Watch.
The average price for a gallon of regular unleaded in the Austin-San Marcos metro area this week is $2.94 a gallon, up four cents from last week and 87 cents higher than this time last year.
Drivers across the state are paying an average of $2.96 this week, which is also up four cents from last week. The average is 84 cents higher than a year ago, when drivers were paying an average of $2.12 a gallon.
Looking at the state's extremes, drivers in El Paso are paying the most on average at $3.35 per gallon, while drivers in Amarillo and San Antonio are paying the least at $2.87 per gallon.
Analysts say the outlook for gasoline demand remains strong, and that optimism continues to drive crude oil markets higher. In addition, market analysts are predicting tighter gasoline supplies after a fire on a key oil pipeline from Iraq to Turkey occurred on Tuesday along with rising geopolitical tensions between Russia and the West over Ukraine.
"The dynamics in the oil and gasoline market remain complex to start off the new year," said AAA Texas spokesperson Daniel Armbruster. "The bottom line for the consumer is that market optimism for crude and gasoline demand remains robust, and, therefore, AAA anticipates climbing gasoline prices in the short term."
Texas drivers are enjoying the lowest gas price average in the country, according to AAA data, while drivers in California are paying the most at $4.65 on average for a gallon of regular unleaded.
