Why are Gas Prices Rising in Sioux Falls Despite Low Demand?
People on average aren't driving more than they have been but gas prices are steadily climbing anyway.
The average price for a gallon of gas in Sioux Falls is $2.27 per gallon, according to AAA. That price is up nine cents from just one week ago and it is 26 cents since a month ago.
So if demand is still low, why are the prices going up?
“Gas prices are rising as supply tightens and crude oil gets more expensive. Decreasing demand is outweighed by these other factors at the moment,” said Marilyn Buskohl, AAA spokesperson in a press release. “Last week crude oil pushed to the highest price since before the pandemic. If crude prices remain high, Americans can expect to pay more at the pump this month.”
The price across the state also saw a sharp incline but not as bad as Sioux Falls. The average is currently $2.27 per gallon. That's a nickel higher than it was a week ago and 15 cents higher than a month ago.
One year ago, when we were still well over a month away from the kickoff of the coronavirus pandemic and subsequent lockdown, the average price of gas in South Dakota was $2.50 per gallon and in Sioux Falls it was $2.45.
It's still not bad, in spite of the increase. If you remember back in 2013 when gas got crazy expensive, the highest ever recorded statewide average was $4.18 per gallon.