Gasoline, second only to eggs, is perhaps one of the top things people in the United States often like to complain about. Like eggs, gas exists in a unique microeconomy where prices can go up and down temporarily.
As of February 26, 2025, the average national price for one gallon of regular gasoline was $3.13, which is lower than $3.16 a week ago and $3.26 a year earlier, according to AAA. California had the highest gas prices in the country, with drivers paying an average of $4.825 per gallon.
Why are gas prices going up in Texas?
In Texas, prices have recently gone up quickly and at different rates in various markets, even though they had been mostly decreasing over the past year.
As the federal government issues new mandates and geopolitical tensions continue to change, find out which Texas cities offer the lowest gas prices and where prices are increasing the most rapidly.
Texas Gas Prices: Where it’s cheapest and most expensive
According to the American Automobile Association (AAA), almost all cities in Texas saw an increase in petrol prices last week. In Austin, the price of gas increased by 10 cents from $2.72 per gallon to $2.82 last week, which is more than three times higher than the statewide average of three cents.
The increase was the second highest in the state, surpassed only by San Antonio with a significant increase of 16 cents over the past week. As a result, San Antonio now has the second highest average gas price among major Texas cities, which is more than five times higher than the average price in the state.
In other areas, El Paso had a rise of eight cents per gallon, while Houston saw a two-cent increase. One exception in Texas was the Dallas region, where gas prices per gallon went down by eight cents.
According to AAA data, only five of the 27 Texas cities saw lower prices than last week.
Where can you find the cheapest gas in Texas?
Based on the most recent AAA report, Houston currently has the lowest gas prices compared to other big cities in Texas, at $2.70 per gallon. Dallas and Fort Worth are next, with average prices of $2.78.
Austin is located centrally in Texas with gas priced at $2.71 this week, slightly lower than San Antonio, which has gas priced at $2.72 and is rising quickly.
El Paso has the highest gas prices in Texas last week, at an average of $2.86 per gallon. This is much higher than the state average of $2.69 and is the most expensive compared to all other cities surveyed by AAA. Although the price of petrol in El Paso is higher than in other cities, it is still well below the national average of $3.13 per gallon.
Why are gas prices increasing right now?
According to the latest data from the Energy Information Administration (EIA), demand for petrol has declined, falling from 8.57 million b/d last week to 8.23 million. At the same time, the total supply of gasoline in the country also decreased from 248.1 million barrels to 247.9 million. Production of gasoline also went down last week to an average of 9.2 million barrels per day.
All of these factors have caused prices to rise all over the country, but especially in California due to maintenance issues impacting oil production.
How Politics and Trade Could Push Prices Even Higher
In addition, former President Donald Trump’s threats to impose tariffs across the globe could potentially lead to higher prices. Canada, Mexico, and Brazil supply a significant amount of gasoline to the United States and are facing potential tariffs from Trump.
Since these countries account for about 30% of the U.S. crude oil market, an increasing trade conflict could give them, especially Canada, some leverage over gas prices.
What Happens Next?
Prices are predicted to increase in the upcoming weeks as more drivers hit the road during spring, and U.S. refineries typically go through seasonal maintenance that causes a slowdown in production.
The gas prices have a strong impact on Americans’ personal finances and their overall view of the economy and political leaders. The increase in gas prices during the previous president Joe Biden’s term contributed to voters’ negative view of his management of the country and added to their dissatisfaction with his government.
Donald Trump has said he will lower living costs for Americans, but things outside of his influence could actually make prices go up and make voters upset.
(Credits: Austin American-Statesman & MSN Newsweek)
