Philly gas prices move up a nickel more, but crude oil markets pull back
Fuel prices in Philly increased about a nickel a gallon Wednesday. But does the drop in crude prices mean relief is on the way?
Fuel prices in the Philadelphia area increased by about a nickel a gallon Wednesday to a new record following President Joe Biden’s announcement on Tuesday that the United States would impose a ban on Russian energy imports as punishment for its Ukraine invasion.
The average price of a gallon of unleaded gasoline in Southeastern Pennsylvania settled at $4.45 a gallon on Wednesday, up 5 cents from Tuesday and up 60 cents from a week ago, according to AAA. In South Jersey, the average price was $4.29 a gallon, up 5 cents from the day before and up 66 cents in the last week.
Some relief for consumers from the whiplash may be coming: The price of a barrel of benchmark West Texas Intermediate crude pulled back 11% to about $109 on Wednesday after reports that the United Arab Emirates might boost oil production to offset potential losses from Russia, among the world’s top producers. Crude oil is the primary raw material of gasoline and diesel.
The pump prices have reached records on successive days in the Philadelphia area, where the previous high was $4.16 in June 2008. Adjusted for inflation, the 2008 price would be $5.32 today.
The national average price of fuel Wednesday was $4.25 a gallon, according to AAA. New Jersey’s statewide average is $4.33. Pennsylvania is $4.39, according to AAA.
Diesel prices in Pennsylvania are now $5.27, up 93 cents, or 21%, in a week, according to AAA. The national average for diesel is $4.88 a gallon. Diesel prices have a direct impact on shippers, whose trucks deliver most of the nation’s commodities to market, so the price increases inevitably will be passed along to consumers in the form of higher prices.
» READ MORE: Gas prices are up. How high will they go?
Biden warned consumers on Tuesday that prices were certain to continue rising in response to a U.S. ban on imports of Russian petroleum and gas, the latest sanctions punishing Russian President Vladimir Putin.
Where do I find cheap gas?
Join the crowd. “Cheap gas near me” is a trending search topic online. Actually, you only need to type the word “gas” into a search engine and Google begins to churn our fuel prices near your location. It seems to know you’re not looking for indigestion or other forms of gas.
GasBuddy and AAA operate websites that allow users to search for the best prices in their area, as reported by other motorists. If a price is outlandishly low, make sure to check when the last time the price was updated.
Geico, the insurance company, also offers an online search tool and app that finds the best prices within five miles of your location.