Will gas prices keep rising in Kentucky? What to know about surge at the pump

Gas prices continue to rise in Kentucky, and that upward trend may continue along with the rest of the United States, analysts say.

The average price of gas in Kentucky as of Friday is $2.66 per gallon, according to AAA. That marks an increase of 26 cents in the past month and 49 cents in the past year.

Prices in Kentucky remain less expensive than the national average of $2.83 — and some analysts expect the national average to near $3 this spring.

Prices have mostly been increasing since they bottomed out in spring 2020, according to Gas Buddy. The cost of gas in Kentucky was around $1.39 per gallon in April before rising to about $1.90 in November, a Gas Buddy chart shows. Since then, prices have been on an upward trajectory.

Why are gas prices increasing?

The largest reason for the national increase in gas prices is low levels of production from the Organization of the Petroleum Exporting Countries, or OPEC. Last April, OPEC agreed to cut 10 million barrels per day of oil production, and has not increased production.

“Extending the production cuts maintains a growing imbalance between demand and supply, and puts more pressure on oil prices to rise, should global demand continue to recover,” Gas Buddy Analyst Patrick Patrick De Haan said last week. “A continued recovery seems likely, led by American motorists filling their tanks at the fastest pace since the pandemic began.”

OPEC’s decision led to a surge in crude oil prices, AAA said this week. That surge, coupled with OPEC’s production not returning to pre-COVID numbers, could mean another increase for gas prices in the U.S., according to AAA.

There is also a higher demand for gas due to the economic recovery from the COVID-19 pandemic and confidence in the vaccines to protect against the illness. Gas prices often increase as demand increases, according to the Energy Information Administration.

“The coronavirus numbers in every state are moving in the right direction,” De Haan told PolitiFact. “We’re now seeing the highest demand since the pandemic started. And now that demand is up, and oil production is not, that has pushed oil prices up.”

AAA said the national average could climb toward $2.90, while Gas Buddy expects it to reach $3.

The last time gas flirted with a price tag of $3 per gallon was in 2018, when it reached an average of $2.97 per gallon, McClatchy News reported.

Kentucky average gas prices, according to AAA

Lexington: $2.67 per gallon

Louisville: $2.80 per gallon

Bowling Green: $2.65 per gallon

Owensboro: $2.62 per gallon

Ashland: $2.51 per gallon

Covington: $2.65 per gallon