Lansing gas prices up as demand grows higher than oil production

Gas prices_112179

LANSING, Mich. (WLNS) — Have you noticed gas prices are going up?

If so, you’re right.

Lansing gas prices have risen 14.7 cents per gallon in the past week, averaging $2.75/g today, according to GasBuddy’s daily survey.

The survey collects data from 177 stations in Lansing.

Gas prices in Lansing are 41.1 cents per gallon higher than a month ago and stand 51.4 cents per gallon higher than a year ago.

According to GasBuddy price reports, the cheapest station in Lansing is priced at $2.58/g today while the most expensive is $2.89/g, a difference of 31.0 cents per gallon.

The lowest price in the state today is $2.48/g while the highest is $2.99/g, a difference of 51.0 cents per gallon.

The national average price of gasoline has risen 7.5 cents per gallon in the last week, averaging $2.72/g today.

The national average is up 30.3 cents per gallon from a month ago and stands 30.6 cents per gallon higher than a year ago.

Historical gasoline prices in Lansing and the national average going back ten years:
March 1, 2020: $2.24/g (U.S. Average: $2.41/g)
March 1, 2019: $2.51/g (U.S. Average: $2.42/g)
March 1, 2018: $2.58/g (U.S. Average: $2.54/g)
March 1, 2017: $2.53/g (U.S. Average: $2.32/g)
March 1, 2016: $1.72/g (U.S. Average: $1.76/g)
March 1, 2015: $2.46/g (U.S. Average: $2.42/g)
March 1, 2014: $3.74/g (U.S. Average: $3.45/g)
March 1, 2013: $3.91/g (U.S. Average: $3.77/g)
March 1, 2012: $3.82/g (U.S. Average: $3.74/g)
March 1, 2011: $3.43/g (U.S. Average: $3.37/g)

Neighboring areas and their current gas prices:
Ann Arbor- $2.76/g, up 11.7 cents per gallon from last week’s $2.64/g.
Flint- $2.74/g, up 13.9 cents per gallon from last week’s $2.60/g.
Grand Rapids- $2.76/g, up 15.6 cents per gallon from last week’s $2.60/g.

Why has the price of gas increased?

“Gas prices continued to surge last week following cold weather-related shutdowns in Texas, but going forward, the impact from the cold has likely run its course. However, several other factors will rise in their influence on gas prices again, including the fact that gasoline demand continues up steam,” said Patrick De Haan, head of petroleum analysis for GasBuddy.

Demand is greater than oil production right now

“According to Pay with GasBuddy data, last week’s total gasoline demand soared to the highest level since the pandemic began as COVD-19 cases continue to drop and and Americans are filling up more. On the supply side, the number of oil rigs active in the U.S. stands nearly 50% lower than a year ago, which is a large factor driving prices up. To put it simply, demand is recovering much much faster than oil production levels, which is why oil prices have soared. This week, OPEC will be meeting to hopefully increase oil production to temper the rise in prices, but will they increase oil production enough to match the growing appetite of a global economy that’s seen oil demand jump? We’ll have to wait and see.”

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