Fuel prices are rising in the new year, with the national average gas price reaching $2.38 a gallon this week. The national average price of diesel increased 2.6 cents in the last week and stands at $2.62 per gallon.
Patrick DeHaan of GasBuddy says, “Gas prices have jumped to yet another multi-month high as crude oil price rise amidst perceived improvement in the COVID-19 pandemic.” Additionally, rumors incoming President Joe Biden will cancel approval of the Keystone XL pipeline after inauguration Wednesday would cut off reliable Canadian oil to the U.S., according to DeHaan.
He says oil prices may see additional pressure in the coming days, but says not to expect much of a break from rising gas prices, which now stand less than twenty cents from their year-ago levels. The price of West Texas Intermediate crude oil continued to rally over the last week as a weakened U.S. dollar, as well as continued market optimism, have boosted oil prices.