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Rising Oil Prices Drive Gas Prices Higher

by Krystal

WASHINGTON, D.C. (January 16, 2025) — Oil prices, currently around $80 per barrel, have contributed to a slight increase in gas prices. The national average for a gallon of gas rose by four cents this week, reaching $3.10. At the same time, the national average for electricity at public electric vehicle (EV) charging stations remains steady at 34 cents per kilowatt hour.

“Domestic gasoline demand is low, so why are gas prices rising? The answer lies in the cost of oil,” said Andrew Gross, spokesperson for AAA. “Global oil prices have jumped due to strong demand for heating fuel this winter and new U.S. sanctions on Russia’s energy sector. Oil makes up 56% of the cost at the pump. As oil prices rise, so do gas prices.” However, Gross noted that 26 states still have average gas prices below $3 per gallon for now.

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