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Gas prices continue to rise in Alabama


SYLACAUGA, Ala. – Expect to pay more at the gas pumps today and in the coming weeks, as gas prices continue to climb.

AAA’s Daily Fuel Gauge Report shows the current average price for unleaded gasoline in Alabama is $2.50 a gallon, while the national average price for unleaded gasoline is $2.74.

The average gas price in $2.49 which is just below the state price average.

According to Tim Allen, Owner of Allen Oil Co. the COVID-19 pandemic caused gasoline consumption to tank. Refineries had surplus, lowered prices, slowed production, used less crude which caused crude prices to fall as well. Now that we are recovering from the COVID-19 impact, crude sales are climbing yet OPEC is hesitant to raise production and helping increase crude prices.  Also, crashing crude prices caused fracking operations in North America to shut down due to economics and also lowered crude production domestically.  Crude, not demand has been main reason for rising prices. The recent winter storms have been tough on refineries, which are mostly located in Texas, Louisiana, and Oklahoma. As much as 20% of refining capacity went off line during the Texas ice storm.

Gas prices are expected to climb even more during the summer months.

“Most people don’t realize when demand is being met, it takes 10+ weeks for domestic crude to reach the gas pump,” said Allen. “The price of gas at the pump is reflected by the market, not the actual cost of that product.”

Here are gas prices from around the city of Sylacauga.





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