Which states will be most affected by the February 2024 gas price hike?

The average price of gasoline in the United States is rising once again for the first time since late 2023. According to figures from the American Automobile Association (AAA), the average price of a gallon of gas stands at $3.27 dollars. Since the beginning of the year, West Texas Intermediate (WTI) crude oil has risen nearly 10 percent, trading at $77 a barrel, while Brent, the highest international benchmark, has risen almost 7 percent, with the value of a barrel of crude oil now at $81.

What are driving prices up?

Various factors are driving the price hikes. The first is the increase in demand for gasoline, which has risen from 8.14 to 8.81 million barrels of oil a day in the US. The second is the impact of the conflicts emerging in the Middle East, where trade disruptions caused by the Houthis in the Red Sea are increasing the price of moving petroleum and gas products worldwide. The Houthis have made clear that if Israel stops its campaign in Gaza, they will cease their attacks.

The US Energy Information Administration reported earlier this month that unplanned outages at a BP refinery in Whiting, Indiana, are also pushing prices up as supply falls in the region. “The 435,000-barrel-per-day (b/d) refinery, the largest in the Midwest, has been offline since [1 February] because of a power outage,” reported the agency. There is little information on when the refinery will be returned online, with some outlets reporting that it could be several weeks even though power at the facility has been restored. This temporary outage is leading prices to rise as it has limited the Midwest’s capacity to “produce enough petroleum products to satisfy regional demand” and even “transfer products to states outside the region.”

Though these disruptions in the Midwest are leading to higher prices, average prices remain lower in other parts of the country. However, when looking at which states have seen the largest increases in price since the outage took place, six Midwestern states top the list:

However, when looking at where prices are highest, we must consider the many factors influencing gas prices, including local taxes, environmental regulations, proximity to refineries, and local imports. While the national average for gas prices in February is $3.28 per gallon, some states experience even higher rates. California and Hawaii are the two states with the highest fuel taxes, which makes gasoline prices more expensive.

Here’s a list of the top 5 states most affected by the price hike and their corresponding per-gallon prices as of Sunday, February 18:

The states with the lowest gasoline prices are Wyoming, Kansas, Oklahoma, Mississippi, and Missouri. On average, these states have a price of $2.80 per gallon To find out the current price of gasoline based on your location, visit the AAA website.