The average cost of a gallon of gasoline in Massachusetts increaed another 21 cents over the last week, with regular grade increasing to $4.60 per gallon. That price is 53 cents higher than a month ago ($4.07) and $1.69 higher than May 16, 2021 ($2.91), according to AAA.
Nationwide trends are similar, with the average gallon of gasoline averaging $4.48, a 16 cent increase over the last week. Today’s national average price is 41 cents higher than a month ago ($4.07) and $1.44 higher than this day last year ($3.04).
Both the statewide and national gasoline prices are the highest ever recorded by AAA.
Crude Oil Prices Drive the Cost of Gasoline
The price of gasoline is a product of the price of crude oil. According to the U.S., Energy Information Administration [EIA], a division of the Department of Energy, 59 percent of the cost of regular grade gasoline is the cost of crude oil.
The cost of a barrel of crude oil cost $114 around 2:30 PM on Tuesday, May 16, up around 3.5 percent since yesterday.
Historical crude oil prices are shown below:
US Oil Production has Little Effect on the Price of Gasoline
The cost of oil is determined by the global market. No oil company in the United States produces oil strictly for American consumption. Oil is sold in the global marketplace to maximize profit for oil company shareholders.
While the United States produces more oil than any single nation, producing over 11 million barrels per day in 2020, around 15 percent of the world’s supply, its ability to affect the cost of crude oil is negligible.
The Organization of Petroleum Exporting Countries [OPEC] is a permanent intergovernmental organization of 13 oil-exporting developing nations that coordinates and unifies the petroleum policies. Its member nations combined produced over 27 million barrels per day in 2020, around 36 percent of the world’s crude oil. Its members are:
- Algeria
- Angola
- Equatorial Guinea
- Gabon
- Iran
- Iraq
- Kuwait
- Libya
- Nigeria
- Republic of the Congo
- Saudi Arabia
- United Arab Emirates
- Venezuela
In 2016, OPEC and ten oil-exporting countries that are not OPEC members formed a new organization called OPEC+. These ten countries produced nearly 16 million barrels per day in 2020, around 21% of the world’s oil.
- Azerbaijan
- Bahrain
- Brunei
- Kazakhstan
- Malaysia
- Mexico
- Oman
- Russia
- South Sudan
- Sudan
Combined, OPEC+ countries produced over 43 million barrels of oil per day in 2020, around 57% of the world’s supply, giving it extraordinary control over the price of oil based on the volume it produces, or chooses not to produce.
The Best Gas Prices in the Worcester Area
According to Autoblog, the best gas prices in Worcester are found at:
According to GasBuddy, the best prices for gas in the Worcester area are:
