Gas prices tick up heading into Memorial Day weekend

It happens every year. The price of gas goes up around Memorial Day weekend, just in time for that first trip of the summer.

This year is no different.

But while Texas motorists may moan that the statewide average for a gallon of unleaded gas has gone up seven cents this month — and 14 cents more in Fort Worth and Arlington — consumers will still be paying the lowest Memorial Day gas prices since 2005.

Statewide gas prices hit $2.07 a gallon this week, up a penny in less than a week, according to the AAA Texas Fuel Gauge. In Fort Worth and Arlington, gas prices ticked up two cents to $2.14 a gallon. In Dallas, the average price was $2.15, the insurance agency reported.

But the Texas average price was 44 cents lower than last year and $1.91 below the record high price of $3.98 a gallon in 2008, AAA reported.

“People have a short-term memory on gas prices,” said Will Speer, a senior petroleum analyst for GasBuddy.com. He said they’ve forgotten that two years ago the statewide gas price was $3.44.

“They were used to it being $1 and something. Now that it’s $2 and more, people start to notice that new number,” Speer said.

Analysts go through the same routine every year. They predict gas prices will climb because refineries are making the environmentally sensitive summer blend of fuel that burns cleaner than what’s sold during the winter. But it’s also more expensive to make.

There’s also the need for refinery maintenance. And of course, there is the price of crude oil, which makes up 50 percent of the price of gasoline.

This year there’s been a number of events driving up gas prices. Crude oil, while still well below the $100 a barrel level from a few years ago, is going back up. A barrel of domestic oil was selling for $48.62 when the market closed Tuesday. As recently as April 4 it was $37, Speer said.

Extended refinery maintenance in the Midwest is also somewhat to blame for the jump in Texas prices, Speer said. “What is going on in the Midwest are refining issues ... you want to be done before Memorial Day to keep up with the summertime demand,” he said.

Adding to the higher-gas-price mix is higher demand for fuel during the summer as more people take road trips. AAA projects that 89 percent of the more than 38 million Americans traveling this holiday weekend, for example, will drive to their destinations.

As a result, it is harder to find gasoline selling for less than $2, with 95 percent of the gas stations selling above that price, Speer said.

Still, motorists shouldn’t panic, he said. He expects prices to remain flat during the weekend.

“We saw this rise coming and it is a rise we were expecting but not as bad as in previous years,” Speer said. “They need to drive to the beach and enjoy their savings.”

This story was originally published May 24, 2016 at 5:47 PM with the headline "Gas prices tick up heading into Memorial Day weekend."