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Prices jump at the pump, residents paying $25 more than last year to top off

Posted by Scott Johnson | Oct 20, 2021 | Bay Briefs | 0 |

Gas prices jumped 13 cents per gallon in Alabama in a week — the second-largest weekly increase in the nation behind Ohio (15 cents).

One year ago, gas prices in Mobile, Daphne, Fairhope and Foley all sat below $2 per gallon, according to data published by AAA. As of Tuesday, Oct. 18, gas in both Mobile and Baldwin counties averaged more than $3.14. This means Alabamians are paying roughly $25 more than last year to purchase 20 gallons of fuel.

On Tuesday, Mobile averaged slightly more than the statewide average ($3.13), with unleaded gas at $3.14 per gallon; Baldwin County gas stations averaged $3.17 per gallon. Both counties averaged $3.39 per gallon on diesel. According to Gasbuddy.com, the best gas prices on Tuesday in Mobile County were tracked at Target in Semmes at $2.85. Dodge’s convenience store in Foley was ranked as the cheapest fuel in Baldwin County with regular unleaded being sold at $2.87.

Statewide, Alabama’s price at the pump for regular unleaded gasoline is currently an average of $3.13 — 13 cents more expensive than the week prior and 27 cents more expensive than last month. The cheapest gas averages in the state ($2.98 to $3.10) seem to be concentrated in Alabama’s northern region. The most expensive gas in the state is being seen in counties south of Birmingham, where prices range from $3.20 to $3.40. Alabama’s highest-ever gas prices were marked in September 2008, when gas hit $4.05 per gallon.

The state is the 14th lowest for average fuel costs and continues to grow closer to the national average of $3.34. California has the highest gas prices, averaging $4.51 per gallon. Alabama’s gas tax increased by 2 cents beginning Oct. 1, bumping the state gas tax rate up to 28 cents and completing the total 10-cent gas tax hike implemented in Gov. Kay Ivey’s 2019 Rebuild Alabama Act.

AAA attributes this price jump to surging prices of crude oil. According to new data from the Energy Information Administration (EIA), last week’s total domestic gasoline supply fell by 2 million barrels to 223.1 million barrels. Gasoline demand also fell from 9.43 million barrels per day to 9.19 million barrels per day, but the agency calculates it is still some 610,000 barrels per day above last year.

“Typically, softening demand should result in some easing of pump prices, but the higher cost for crude is blocking this. With oil prices remaining elevated, pump prices will follow suit because the cost of crude oil accounts for more than half of the price of each gallon of gas,” Andrew Gross, AAA spokesperson, said.

A breach and spill in a key pipeline supplying fuel to parts of the southeastern U.S. led to tightened regional supplies earlier this month. Kinder Morgan Inc. (KMI) said it expected repairs to its southeastern products pipeline to be completed Oct. 9, with a restart afterward. However, flooding near Birmingham during this time postponed repair efforts. The spill took place on Oct. 1. The pipeline serves various metropolitan areas including Birmingham, Atlanta, Charlotte, N.C., and Washington, D.C.

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PreviousSupply chain hiccups shaking up school menus
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About The Author

Scott Johnson

Scott Johnson

Reporting on Mobile County, crime, public safety and education.

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