The cost of gasoline and diesel for motorists in Texas is rising sharply due to disruptions in the global petroleum supply, which is driving up energy prices and is also being felt in products like motor oil.
The report refers to AAA figures showing that the average price of diesel in Texas reached a record high of $5.8814 per gallon, which was an increase from $5.5033 the week before and from $3.1989 a year earlier; regular gasoline in Texas had an average price of $3.8558 per gallon, as compared with $3.6726 the previous week and $2.7876 a year earlier.
Nationally, regular gasoline averaged $4.3289 per gallon on September 15.
The rise in prices occurs in the context of disruptions to petroleum production and to shipping routes in the Middle East. The International Energy Agency anticipates that global oil supplies will decrease considerably in 2026 due to the impact of these disruptions on production and exports in the Gulf region. As a result, oil prices have stayed above $100 per barrel, placing additional strain on the fuel markets.
Higher prices for petroleum are also having an impact on consumer products, with Costco having been reported to increase its prices and introduce purchase limits for certain motor oils. A two-pack of Kirkland Signature full-synthetic motor oil, consisting of two five-quart bottles, now costs about $58, whereas it cost roughly $30 last year.
It is said that refiners are focusing on producing gasoline and diesel to meet strong demand, which may result in lower supplies of petroleum products needed to manufacture motor oil.
The energy shortage is especially apparent in Texas, where regular gasoline is now more than $1 per gallon higher than a year ago, while diesel has risen by over $2.68 per gallon in the same period.
The ongoing uncertainty about global oil production and the routes used to transport it might continue to exert pressure on fuel prices, not only impacting individual drivers but also affecting companies such as trucking and logistics firms that rely heavily on petroleum products.
Source: Texas Border Business
Original Link: https://texasborderbusiness.com/energy-crunch-pushes-fuel-and-motor-oil-prices-higher/