Las Vegas gas prices still rising, but at slower rate
Gasoline prices continue to rise across the Las Vegas Valley and continue to hit new daily all-time highs.
The average price for a gallon of regular unleaded gasoline in Southern Nevada on Tuesday inched up 1 cent over Monday to $5.36, according to AAA. The slight increase comes after the price remained flat at $5.35 between Sunday and Monday.
The price has spiked 15 cents in the last week and is up $1.35 per gallon in the last month. The week-to-week price jump slowed, as March 22 saw an average price of $5.21, which was up 24 cents compared to the prior week.
Statewide, Nevadans are paying an average of $5.25 per gallon, up 1 cent over Monday’s average of $5.24. Gas prices have steadily increased in the state, with the last day-to-day decrease coming on Jan. 31, when gas was at $3.80 a gallon, according to AAA.
Nevada has the second highest state gas price average, behind California, which is inching closer to a $6 per gallon average at $5.91 Tuesday. Hawaii was the third most expensive state with a $5.14 per gallon average.
“As the cost of a barrel of oil has remained near $100, and crude makes up more than two-thirds of the cost at the pump, the gas price decline has slowed,” said John Treanor, AAA spokesman. “The global oil market reflects the volatility caused by the war in Ukraine and with oil prices refusing to fall, the price at the pump is also resisting that pressure as well.”
Treanor noted demand for gasoline has slowed during a time when there’s typically a spike in demand. That is a contributor to the national average leveling off as of late. Tuesday’s national average was at $4.24, unchanged from Monday and a week ago.
The reduced demand “could be due to high gas prices and in turn is helping bring down the cost at the pump,” Treanor said. “But if the cost of crude oil remains high or goes up that will slow down the progress and drive up gas prices.”
On top of high crude oil costs and the continued war in Ukraine, recent issues at multiple California oil refineries contributed to the recent surge in retail gas prices in Las Vegas.
Patrick De Haan, lead fuel analyst for GasBuddy, said the refinery issues have been addressed and, coupled with dipping wholesale prices, motorists should soon begin to see prices at the pump start to fall.
“With the overall decline in oil price and the extra drop as refinery issues have been addressed, LA could eventually see a decline of 35-75c/gal in the coming weeks,” De Haan said in a tweet.
De Haan said a similar price decrease is likely to be seen in Las Vegas, as the city relies on Southern California for the majority of its gasoline.
Despite the continued increase in gas prices, travel demand to Las Vegas hasn’t waned.
“I would add that the appetite for travel doesn’t appear to have changed and Las Vegas remains one of the most sought after destinations through AAA bookings,” Treanor said.
Contact Mick Akers at makers@reviewjournal.com or 702-387-2920. Follow @mickakers on Twitter.