Gas prices in Delaware are spiking, and it may be a while before they begin to drop

Gas prices in Delaware have reached highs not seen in years and it may be the end of the year or the beginning of 2021 before they drop.

The average price of a gallon of gasoline in Delaware on Thursday was $3.26 per gallon, according to AAA Mid-Atlantic, a 4-cent increase over last week. The national gas average on Thursday was $3.36 per gallon. 

This time last year, gas was nearly a dollar cheaper per gallon in Delaware and more than a dollar cheaper nationally.

“I’m not surprised by it because of how COVID has messed up supply chains and everything,” said Phillip Karl while pumping gas at a Royal Farms. 

Karl said it used to cost him $30 to fill up his car but now it’s $40. 

The primary reason for the surge in price is the cost of crude oil. In August, the price of crude oil per barrel was in the low $60s. It is above $80 now. 

Crude oil prices have also been affected by forecasts from the International Energy Agency, which predicts higher oil demand, especially in the form of heating oil for winter.

"Compared to the price of gas a year ago, it now costs consumers about $17 more to fill up their vehicles," said Andrew Gross an American Automobile Association spokesperson. "That's the cost of a large pizza with toppings. And unfortunately, it doesn't look like drivers will be finding relief at the pump any time soon." 

A driver who fills up once a week is spending nearly $70 more a month.

The state with the highest per gallon gas price is California at $4.49, followed by Hawaii at $4.18 and Nevada at $3.88.

Delaware saw its highest gas prices on June 16, 2008, at $4.07 per gallon. The highest national average came about a month later on July 17, 2008, at $4.17 per gallon. 

Storage levels for domestic crude inventories are almost 13% lower than at this time last year. Due to these supply concerns, prices continue to rise because of tight supply. There are fears that prices could climb even higher this week.  

Allen Loudon, owner of Auto Express Transport Inc. in Seaford, said the sudden surge in prices has been stressful.  

His company specializes in auto transportation for car dealers and manufacturers, rental companies, and government agencies and goes through about 4,000 gallons of fuel a week.  

“It’s costing me $3,000 more a week,” Loudon said. “It’s killing me.” 

Nichole Reed owns a Dodge Journey and said it cost $57 to completely fill her tank last night compared with $35 to $40 a couple of weeks ago.  

“I do feel that it’s outrageous,” she said. “It’s almost like you can’t afford to have a vehicle.” 

The energy agency previously recently reported that total domestic gasoline supply fell by 2 million barrels to 223.1 million. Gasoline demand followed suit and fell from 9.43 million barrels per day to 9.19 million. Despite these numbers, gasoline demand is still about 610,000 barrels a day above last year.  

Slowing demand this time of year normally results in gas prices dropping but the higher cost of crude oil is preventing this. As long as oil prices remain high, gas pump prices will continue to follow because the cost of crude oil makes up more than half the price of each gallon of gas.