Gas expert: rising gas prices in Peoria due to high demand, low supply

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PEORIA, Ill. (WMBD) — Experts said gasoline demand continues to drive up gas prices in Peoria.

According to GasBuddy’s weekly survey, Peoria gas prices rose 8.2 cents per gallon in the past week, which is 31.3 cents per gallon higher than a month ago.

The survey showed average gas prices in Peoria currently at $2.86 per gallon. The cheapest gas price in the area is priced at $2.60 while the most expensive price is $2.99 per gallon, a difference of 39 cents per gallon.

GasBuddy Petroleum Analysis Head Patrick De Haan said gas prices continued to surge last week following cold weather-related shutdowns in Texas, but going forward, the impact from the cold has likely run its course.

He said several other factors will rise in their influence on gas prices again, including the fact that gasoline demand continues to go up.

“According to Pay with GasBuddy data, last week’s total gasoline demand soared to the highest level since the pandemic began as COVID-19 cases continue to drop and Americans are filling up more,” De Haan said.

“On the supply side, the number of oil rigs active in the U.S. stands nearly 50% lower than a year ago, which is a large factor driving prices up. To put it simply, demand is recovering much faster than oil production levels, which is why oil prices have soared. This week, OPEC will be meeting to hopefully increase oil production to temper the rise in prices, but will they increase oil production enough to match the growing appetite of a global economy that’s seen oil demand jump? We’ll have to wait and see.”

Comparatively, gas prices across the state average $2.83 per gallon, up 7.4 cents from last week’s price. Champaign’s average price rose to $2.81 per gallon, and over in the Quad Cities, the average price rose to $2.64 per gallon.

The national average gas price also rose, averaging $2.72 per gallon.

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