High crude oil price, rising demand boosting Pittsburgh region gas prices

Gasoline prices are increasing in Western Pennsylvania as crude oil stays above $90 per barrel, according to AAA East Central’s gas price report.

The average price in Western Pennsylvania this week was about $3.63 per gallon, which is a 3-cent increase from last week.

That’s also 82 cents higher than it was a year ago.

The national average went up 4 cents per gallon, to $3.48.

“The main culprit behind the recent climb in pump prices continues to be the high cost of crude oil, which is currently staying above $90 per barrel,” AAA said in its trend analysis. “Moderating winter weather and optimism over a potential fading of the omicron variant have led to an increase in gas demand.”

Gasoline demand has increased from 8.23 million barrels per day to 9.13 million, AAA said, citing data from the Energy Information Administration. Conversely, total domestic gasoline stocks dropped by 1.6 million barrels, to 248.4 million barrels last week.

“A decrease in total stocks and increased demand have contributed to upward pressure on pump prices, but rising crude oil prices continue to play the dominant role in pushing pump prices higher,” the AAA report said.

Tension between Russia and Ukraine also is contributing to rising oil prices, AAA said.

Further adding to the rise at the pump is that the bulk of the nation is starting the transition to summer gasoline, said Patrick De Haan, head of petroleum analysis at GasBuddy.

“I see no other potentials in the short term but additional price increases unless Russia does an about-face on Ukraine,” De Haan said. “Even then, we’ll still see seasonality push prices up, so motorists should be ready to dig deeper.”

The average price of unleaded self-serve gasoline in selected areas as reported by AAA:

• Beaver: $3.60

• Butler: $3.60

• Greensburg: $3.57

• Jeannette: $3.60

• Kittanning: $3.61

• Latrobe: $3.55

• New Kensington: $3.59

• Pittsburgh: $3.59

• Washington: $3.55