AUSTIN (Talk1370.com) -- Drivers across Texas are facing the largest weekly increase at the gas pump so far this year, according to the latest AAA Texas Weekend Gas Watch.
Austin-area drivers are paying an average of $3.44 a gallon, which is a 21 cent increase from last week. The average is down 40 cents from this time last year.
Across the state, drivers are paying an average of $3.39 a gallon, which is an 18 cent increase from last week and a decrease of 41 cents compared to a year ago.
Drivers in El Paso are paying the most on average at $3.84 per gallon, while drivers in San Angelo are paying the least at $3.22 per gallon.
According to AAA's survey, most Texas metropolitan areas saw healthy gas price average increases week-over-week, with the statewide average experiencing the largest weekly price jump since the beginning of the year. Gasoline inventories have decreased as demand for fuel remains strong during a busy summer travel season.
Excessive heat has also led to some refineries decreasing production output. In addition, Saudi Arabia’s recent reduction in output is causing crude oil prices to rise. West Texas Intermediate was trading at $79 per barrel Thursday morning, which is about $12 more compared to the start of June. Crude oil accounts for approximately 50% of the cost of each gallon of gas.
Analysts say it remains to be seen how long prices will remain elevated compared to averages in early summer. If crude prices continue to increase, retail gas prices will likely follow suit.
“Increasing crude oil prices, decreasing gasoline inventories and strong demand for fuel thanks to a busy summer travel season are forcing retail gas prices even higher,” said AAA Texas spokesperson Daniel Armbruster. “Price averages are still well below where they were last summer, however if crude oil prices continue to increase, we will see the year-over-year price gap narrow even further.”