Where is the cheapest gas in Brookings?
BROOKINGS – Gas prices across the country have been climbing throughout the past year but in the last week or so have reached near records levels.
In Brookings, gas prices are high – begging the question, who has the cheapest gas?
As of midday Thursday, gas prices ranged anywhere from $3.87 to $3.89.
The cheapest gas in Brookings Thursday was the Depot on the corner of Medary Avenue South and 20th Street South and Corner Pantry (Phillips 66) on Sixth Street. Both of those gas stations were advertising unleaded gas (with ethanol) at $3.87 a gallon.
The most expensive gas in town (at the time of this writing) was a tie between Casey’s (all locations), Newman’s, Hy-Vee Gas, BP, Amaco (Shell), both Cenex Zip Trips and both Pump N’ Paks. All were selling gas for $3.89.
Gas prices have been steadily rising for much of the year, but they have surged over the past two weeks. Further, the price of gas been rising, but also fluctuating locally by as much as 20-30 cents over the past few days.
“It’s frustrating but there’s not much I can do about it,” one driver who was filling up said. “I have to drive for my job.”
In Volga, gas prices mirror Brookings. Casey’s was selling regular (10% ethanol) gas at $3.89 a gallon but is also advertising unleaded 88, a blend of 15% ethanol and 85% gasoline, at $3.79.
Valley Mart and the Ag First Farmer Co-op were both selling regular gas at $3.89.
What’s behind the rise?
Gas prices are frustrating for everyone, especially for people who have to commute significant time to work. But what causes gas prices to rise? What’s causing the current rise in gas prices?
According to the U.S. Energy Administration (EIA) the price of gas is affected by four components: the cost of crude oil, refining costs, distribution costs, and taxes. The primary component is the cost of crude oil, which is the primary driver behind the rise and fall of gas prices.
Like other commodities, the price of crude oil is driven by supply and demand. Let’s flashback to a not-so-great time: March 2020, the beginning of the COVID-19 pandemic. The price of a gallon of gas fell to under $2.00. Why? No one was driving and demand fell considerably, hence the reduction in price.
As the pandemic began to subside, demand began to rise as a majority of the population resumed a somewhat “normal” lifestyle, which included increased travel and subsequent gas consumption. Gas began to rise steadily in 2021. According to AAA, gas prices in South Dakota one year ago was hovering around $2.79.
As consumption continued to rise heading into the early part of 2022, a global event put even more strain on the supply of crude oil. Last month, Russia invaded Ukraine – putting increased pressure on the rest of the world’s oil supply.
Last month, the average price of gas in South Dakota was $3.35. Currently, the average price of gas is $3.94, per AAA. In Brookings County, the average price of gas is $3.90. The national average is $4.31, according to AAA.
The highest recorded average price of gas in South Dakota, according to AAA, is $4.09, from July 2008.
What’s the future outlook for gas prices?
With no current end to the Russian invasion in sight, South Dakotans should expect gas prices to remain elevated. To what extent, no one is really sure. The short-term energy outlook from the EIA states that price outlooks are uncertain and will be “dependent on the degree to which existing sanctions imposed on Russia, any potential future sanctions, and independent corporate actions affect Russia’s oil production or the sale of Russia’s oil in the global market.”
“We expect crude oil price increases will push the U.S. average gasoline price to $4.10/gal on average in 2Q22, which would be the first time that gasoline prices (not adjusted for inflation) have reached at least $4/gal in any month since July 2008,” according to the EIA.
The above forecast was from March 3. National gas prices have risen significantly since then, signaling that gas prices in South Dakota will also continue to rise.