AUSTIN (Talk1370.com) -- Price increases at the pump showed no sign of slowing down this week, with both Austin-area and statewide prices seeing new increases in the latest AAA Texas Weekend Gas Watch.
Drivers across the Austin-San Marcos metro area are paying an average of $3.16 this week. That's up three cents from last week and 99 cents higher than this time last year.
Across the state, drivers are paying an average of $3.22 a gallon - up seven cents from last week and also 99 cents higher than a year ago.
Of the major metropolitan areas surveyed in Texas, drivers in El Paso are paying the most on average at $3.51 per gallon while drivers in Amarillo are paying the least at $3.09 per gallon.
Nationwide, drivers are paying an average of $3.52 a gallon, which is up four cents on the week and 98 cents compared to last year.
According to the latest data from the Energy Information Administration, demand for gasoline in the U.S. dropped week-to-week by 6%. However, demand remains strong as weekly regional fuel supply is decreasing along with Gulf Coast refinery utilization. The main culprit pushing pump prices up is the high cost of crude oil. Recent spikes in demand for gasoline and other crude oil products in addition to geopolitical tensions continue to keep crude above $90 per barrel.
“Strong demand, tightening supplies and crude oil remaining above $90 per barrel will not alleviate the pain Texas drivers are feeling at the gas pump,” said AAA Texas spokesperson Daniel Armbruster. “The cost to fill up an average tank is approximately $45, which is about $14 more than a year ago.”
One development market watchers will continue to monitor is the possibility of the end of sanctions on Iran. If those sanctions were lifted, analysts anticipate that Iran could quickly bring 500,000 barrels per day of crude oil to market, which could decrease oil prices, or at least slow consistent gains.
The Texas average slipped to the sixth lowest in the country this week, behind Missouri, Oklahoma, Mississippi, Arkansas, and Kansas. Drivers in California continue to see the nation's highest average, at $4.72 a gallon.