Gas prices rise in San Marcos area as more expensive crude oil enters market, AAA Texas says

Gas prices around San Marcos have started to creep above $3 per gallon for regular unleaded fuel.

Drivers in the San Marcos/Austin area saw a 7-cent increase in price per gallon at the pump over the last week, according to AAA Texas. Drivers were paying an average of $3.29 per gallon of regular gasoline as of Thursday, which is up from $3.22 last week. Average gas prices in the area are $0.40 higher than this time last year.

Texas saw a 12-cent increase per gallon of regular unleaded fuel — a rise from $3.20 last week to $3.32 on Thursday, according to AAA Texas. Average gas prices in Texas are $0.40 higher than this time last year. Texans are paying the second lowest gas price average in the U.S.

AAA Texas said gas prices rose statewide for the second consecutive week as the energy markets weighed the OPEC+ announcement that it will cut production by two million barrels per day. The higher price trend, however, may slow as inflation could instill fears of an economic slowdown, AAA Texas added.

“Market forces continue to oppose each other with each headline — whether it be focused on supply or demand,” AAA Texas spokesperson Joshua Zuber said. “Market watchers will be waiting to see just how impactful the OPEC+ cuts are versus continued concerns for a market slowdown, which could lessen demand for fuel products.”

Nationwide, average gas prices rose by 13.2 cents from last week to $3.92 per gallon, according to GasBuddy. The national average has increased 22.5 cents from last month and is $0.67 per gallon higher than last year, GasBuddy added. The national average price of diesel is up 18 cents since last week and was at $5.04 per gallon.

“With OPEC+ deciding to cut oil production by two million barrels a day, we’ve seen oil prices surge 20%, which is the primary factor in the national average rising for the third straight week,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Some of the refinery snags that have caused prices to surge in the West and Great Lakes appear to be improving, with prices in those two regions likely to inch down, even with OPEC’s decision, as the drop in wholesale prices has offset the rise due to the production cut. But where gas prices didn’t jump because of refinery issues, they will rise a total of 10-30 cents due to oil’s rise, and some areas are certainly seeing the jump already.”

In Texas, drivers in the El Paso area are paying the most on average at $3.63 per gallon, while drivers in McAllen and Brownsville are paying the least at $3.19 per gallon.