Stark County Gas Prices Jump Nearly 38 Cents in One Week

Drivers across Stark County are facing one of Ohio’s sharpest recent gasoline price increases after the average price for regular gasoline in the Canton and Massillon area climbed nearly 38 cents in one week.

AAA reported that the Canton and Massillon average reached $4.241 per gallon on Monday, August 3. That was up from $3.865 one week earlier, an increase of 37.6 cents per gallon. The local average was also 69 cents higher than one month earlier and slightly more than $1 above the $3.219 average recorded at the same time last year.

At the current average, buying 15 gallons costs about $5.64 more than it did one week ago and $10.35 more than it did one month ago.

The increase becomes even more noticeable when compared with prices six months ago. On February 3, the AAA average in Canton and Massillon was $2.86 per gallon. A 15 gallon purchase would have cost $42.90 at that price. At Monday’s average, the same amount costs approximately $63.62, an increase of $20.72, or about 48 percent.

The increase in Canton and Massillon was considerably larger than the statewide change. Ohio’s average reached $4.08 Monday, up 20 cents from $3.88 one week earlier. The national average stood at $4.095 per gallon.

Prices also rose in several other Ohio metropolitan areas, but the size of the increase varied considerably. Akron’s average increased 34.3 cents in one week, Columbus rose 30.7 cents and Cleveland increased 25.9 cents. Toledo rose 10.5 cents, Cincinnati increased 7.2 cents and Dayton increased 6 cents.

Those differences show that the Canton and Massillon increase cannot be explained solely by a uniform statewide change in crude oil or gasoline costs. Northeast Ohio generally experienced larger increases than western and southern Ohio, while Canton and Massillon recorded the largest weekly increase among the major Ohio metropolitan areas listed by AAA.

The pattern appears consistent with the retail gasoline price cycles commonly seen in Midwestern markets. During one of these cycles, competing stations gradually lower their prices to attract customers. Once retail prices move close to the wholesale cost of replacing the gasoline being sold, an influential retailer may raise its price. Other stations then follow, producing a sudden increase throughout the local market.

The Federal Reserve Bank of St. Louis has documented this pattern in Midwestern cities. Its researchers found that many markets experience a large price increase followed by smaller, gradual decreases before another increase resets the cycle.

That does not prove that a retail price cycle was solely responsible for the Stark County increase. However, the unusually large local jump, combined with much smaller increases in other parts of Ohio, is consistent with Canton and Massillon stations resetting their prices sooner or more aggressively than retailers elsewhere in the state.

Broader energy market conditions still determine the underlying price paid by stations and consumers. The U.S. Energy Information Administration identifies crude oil as the largest component of retail gasoline prices. Refining costs, distribution expenses, marketing, retail operating costs and taxes also contribute to the final price. Local competition and differences in fuel supplies can cause prices to change at different times from one community to another.

Crude oil prices have been especially volatile. West Texas Intermediate crude oil reached $91.74 per barrel on July 24, an increase of $8.31 from one week earlier. Brent crude oil, the international benchmark more closely connected with American gasoline prices, reached $100.31 per barrel that day.

Oil prices then declined sharply. The latest official daily figures available from the Energy Information Administration showed West Texas Intermediate at $84.25 per barrel and Brent at $91.82 on July 27. The next release of the daily figures was scheduled for August 5.

A decline in crude oil does not necessarily produce an immediate decrease at local gas stations. Gasoline moves through refineries, pipelines, storage terminals, distributors and tanker trucks before reaching retail locations. Stations must also consider how much it will cost to replace the gasoline currently in their underground tanks.

Federal figures show that petroleum supplies remained below typical levels. Commercial crude oil inventories fell by 7.2 million barrels during the week ending July 24, leaving inventories at 404.5 million barrels, about 6 percent below the five year average. Motor gasoline inventories remained approximately 7 percent below their five year average.

The Canton and Massillon average declined slightly from $4.244 Sunday to $4.241 Monday. That small decrease may indicate that the initial local price reset has already occurred and that competition is beginning to push prices downward again. Future movement will depend on wholesale gasoline costs, crude oil prices, refinery operations, available fuel supplies and the pricing decisions made by local retailers.

AAA’s figures are metropolitan averages and do not represent the price charged at every Stark County station. Individual prices may be higher or lower depending on location, competition and when each retailer purchased its current fuel supply.