U.S. gasoline prices have resumed their upward trend, with the national average rising to $3.161 per gallon of regular, up from $3.139 a week ago and $3.115 a month ago, according to AAA. Diesel prices have also increased, now averaging $3.632 per gallon, a rise of 0.8 cents.
Patrick De Haan, head of petroleum analysis at GasBuddy, explained that the increase is largely due to rising gas prices on the West Coast. Refinery maintenance and outages in the region have triggered price hikes that have spread to neighboring states, causing a ripple effect in many communities. “While the rest of the country has seen relatively stable gas prices, the West Coast has experienced significant increases,” De Haan said. “This trend should slow down soon, but refinery maintenance will soon begin in other areas, and the shift to summer gasoline blends will likely lead to price hikes in the coming weeks.”
Despite the price increases, oil prices remain relatively low, holding steady in the low $70s. De Haan also noted that President Trump is working on a potential peace deal between Russia and Ukraine, which could have a major impact on the oil market in the future.
The recent dip in oil prices accelerated after President Trump took significant steps towards resolving the Russia-Ukraine conflict, three weeks into his presidency. However, oil prices edged up on Monday. Brent crude for April delivery increased by 0.2%, trading at $74.92 per barrel, while WTI crude for March delivery rose by 0.4%, reaching $71.03 per barrel.
Trump shared on social media that he and Russian President Vladimir Putin “agreed to have our respective teams start negotiations immediately, and we will begin by calling President Zelensky of Ukraine to inform him of the conversation, something I will be doing right now.”
A potential ceasefire in the Russia-Ukraine war could push oil prices lower, especially if Trump works to remove sanctions on Russia’s energy sector. Tyler Richey, co-editor at Sevens Report Research, told MarketWatch that any improvement in geopolitical stability could “reduce the lingering ‘fear bid’ in the oil market.”
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