The nationwide average price of a gallon of gas sits at $3.14 this morning, according to AAA. That’s up 3 cents from a week ago. Drivers in 21 states can pay less than $3 this morning.
Why the increase? AAA says it comes “amid the threat of tariffs.”
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President Trump threatened to enact a 25% tariff against all goods from Canada and Mexico on March 1. The president initially threatened the move Feb. 1, but has delayed his decision amid negotiations.
“Canada is the source of 52% of U.S. gross total petroleum, including 60% of its gross crude oil imports,” ABC News explains. Mexico adds another 10% of both.
Trump’s final tariff order would have added just 10% to the price of oil and 25% to virtually all other products. The tariff would boost the price at the pump for most Americans.
Drivers may have refilled their tanks before the threatened tariff. The U.S. Energy Information Administration reports that gasoline demand rose last week from 8.3 million barrels per day to 8.8 million.
Gas prices typically rise in spring as producers switch from less-expensive winter-blend gasoline to pricier summer blends. That effect could be delayed this year. Patrick De Haan, head of petroleum analysis for GasBuddy, reports that the stockpile of winter gasoline “is larger than normal” this year, and it could take an extra two weeks for refineries to send it all to gas stations. “Once it’s gone, prices will rise very quickly,” he says.
