Rising retail gasoline prices in the Pittsburgh region eased in the last week, dropping 2 cents per gallon, according to GasBuddy.com, a price-tracking website.
Average pump prices in the Pittsburgh region sit around $2.63 a gallon this morning, according to GasBuddy’s survey of more than 700 stations in southwestern Pennsylvania.
Rising oil prices, coupled with a higher state fuel tax, have pushed up the price of gasoline for six consecutive weeks in the region by 13 cents in the last week, a rare winter spike. The increase in prices this time of year is highly unusual: Over the past four years, U.S. gasoline prices declined an average of 15 cents per gallon in December and more in January as demand drops, GasBuddy analysts have said.
But gasoline is up following an international agreement brokered on Nov. 30 by major oil producers — members of the Organization of Petroleum Exporting Countries, as well as countries outside of that group — to limit production. The agreement aims to alleviate a global oversupply that has weighed down prices for more than two years.
Since the agreement, global crude oil prices jumped by nearly 25 percent and peaked at $58 a barrel last week, the highest mark since the summer months of 2015.
But since, weak demand for oil and some skepticism surrounding the deal have cooled off prices, which hover around $55 a barrel this morning.
Meanwhile, the state tax on wholesale motor fuels increased by 8 cents for gasoline and by nearly 11 cents for diesel fuel on Jan. 1. Those extra costs are likely passed on to retail customers at the pump.
While analysts believe gasoline prices will hold steady throughout the winter months, they have a less optimistic view for when the weather warms up.
“For the first time since November, the national average price for gasoline has fallen over the last week, helped by weak demand and rising gasoline inventories,” said Patrick DeHaan, senior petroleum analyst for GasBuddy. However, motorists shouldn't expect the trend to last long. After the sweetness of Valentine's Day roses and chocolates is gone, they will be in store for a jump at the pump.”
Including the recent increases, Pittsburgh-area gasoline prices are still comparable or even lower from years before. Today’s averages are 24 cents higher than this time in 2015, 90 cents lower than in 2014, and 88 cents lower than in 2013.
Daniel Moore: dmoore@post-gazette.com, 412-263-2743 and Twitter @PGdanielmoore.
First Published: January 16, 2017, 4:03 p.m.