Gas prices hitting $5 gallon in Fresno. Here’s what experts say about holiday travel prices
Gas prices in the Fresno area continued to rise this week and with little indication at the national and international level that the cost at the local pump will go back down anytime soon.
As of Thursday, the average price for gas in the Fresno metropolitan area was $4.436 for regular with an average premium price of $4.74 based on data from the American Automobile Association.
That’s an increase of 11 cents per gallon from a month ago — and a whopping $1.31 per gallon bump from a year ago.
Some gas stations in Fresno have already cracked the $5 barrier when it comes to the cost of premium gas.
Fresno hasn’t seen gas prices this high since 2014.
And there’s growing concern that fuel could once again reach or surpass record highs from 2012 when regular gas in the Fresno area was at an average of $4.671 per gallon.
With the global demand for oil high but supply limited, the cost of crude oil was more than $80 a barrel. In August, the price per barrel was as low as $60.
“With OPEC (the Organization of the Petroleum Exporting Countries) holding back oil production and strong global oil demand, the situation will no doubt pave the road with even higher gas prices in the weeks ahead,” says Patrick De Haan, head of petroleum analysis for GasBuddy.com. “Until several bottlenecks ease, including supply chains and low global inventories of oil, natural gas and coal, we’ll be stuck feeling the pinch of rising oil and gasoline prices.
“The bad news is that for now, all I see is the upward trend at the pump continuing into the weeks ahead with no sign of relief just yet.”
COVID recovery impact on travel
The Energy Information Administration reports the price surge is associated with the increased demand for fuel as the United States recovers from the COVID-19 pandemic and more people traveling again.
Pinnacle CEO Ryan Sitton, whose Texas-based mechanical engineering company focuses on oil and gas, projected oil prices could reach $100 a barrel heading into the winter holidays, according to a television station in San Antonio.
Sitton told the TV station that Texas — which regularly has some of the lowest gas costs in the country, currently at a statewide average of $3.018 — probably would be seeing $4-plus per gallon costs “at some point.”
In California, the current statewide average for gas is $4.531, which is highest in the nation.
Some areas in California already are nearing or at record highs in gas prices.
In the San Francisco area, regular unleaded was at an average of $4.724 for regular gas, which is almost at its record high of $4.739 per gallon from 2012.
San Rafael opened Thursday with a high of $4.731 per gallon.
And in the remote central coast town of Gorda, about 35 miles north of Cambria and 70 miles south of Monterey, the town’s only gas station was selling regular unleaded at $7.59 a gallon and premium was at $8.50 per gallon.
This story was originally published October 21, 2021 at 8:40 AM.
