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Gas prices rise due to supply chain demands

Gas prices rising across Texas

Gas prices have reached an average cost of more than $3 per gallon across Texas. Some Highland Lakes gas stations, including the Circle K/Valero at 105 Water St. in Burnet, aren’t there yet but are getting close. Staff photo by Brigid Cooley

Gas prices are on the rise, despite previous predictions of lower rates beginning in the fall. The price of regular unleaded fuel in Texas has reached a state average of over $3 per gallon.

As of Wednesday, Oct. 27, the average cost of regular unleaded fuel in Burnet County was $3.002 per gallon, according to the American Automobile Association. That price is roughly 5 cents below the state average ($3.049) and 39 cents below the national average ($3.394). 

The price for gas has roughly doubled when compared to October 2020, when the state average for a gallon of regular unleaded fuel was $1.87.

The United States usually sees a slight drop in gas prices during the fall and winter months when demand slightly decreases as people wrap up vacations and other summer activities, explained Patrick De Haan, head of Petroleum Analysis at GasBuddy. GasBuddy provides information on gas prices to online users and has been the only source for station-level data spanning nearly two decades.

While the trend has continued this year, the decrease in national demand cannot offset the global demand, which is affected by many factors, including both national and international supply chain issues, he continued.

“We have to remember that U.S. gas consumption is only a small portion of the demand, and it’s only dropping slightly seasonally,” De Haan said. “There’s much more demand occurring in other countries because of the energy crunch, so it’s offsetting any sort of drop in demand here.” 

A recent energy crunch in China, caused by a shortage of coal, has led the country to buy up other resources, including natural gas and crude oil. Meanwhile, Europe is also experiencing a shortage of natural gas, which has affecting communities globally. 

On a national level, the impact of Hurricane Ida, a Category 4 storm that reached the United States in late August, is also contributing to rising prices. The storm shut down over 90 percent of oil production in the Gulf of Mexico for several weeks, De Haan explained. 

“There’s only so much that’s to be expected,” De Haan said. “One would not have expected a global energy crunch in China, that’s not a reasonable expectation. One can expect a hurricane, but Hurricane Ida was much bigger than expected.”

For in-depth analysis and information surrounding gas prices, the industry and price trends, visit the GasBuddy website

Highland Lakes gas prices for Oct. 27 as listed on GasBuddy:

H-E-B, 1503 RR 1431 West in Marble Falls

  • Regular: $2.81
  • Midgrade: $3.04
  • Premium: $3.33
  • Diesel: $3.19

Walmart, 2612 U.S. 281 in Marble Falls

  • Regular: $2.97
  • Midgrade: $3.23
  • Premium: $3.36
  • Diesel: $3.29

WakePoint LBJ, 14757 RR 1431 West in Kingsland 

  • Regular: $3.03
  • Midgrade: $3.06
  • Premium: $3.33
  • Diesel: $3.26

Circle K/Valero, 105 Water St. in Burnet

  • Regular: $2.89
  • Midgrade: $3.30
  • Premium: $3.70
  • Diesel: $3.29

Average gas prices can fluctuate on a daily basis.

Neighboring areas and their current gas prices:

  • Midland Odessa — $3.16 a gallon
  • San Antonio — $2.92 a gallon
  • Austin — $2.99 a gallon

brigid@thepicayune.com