LEXINGTON, Ky. (FOX 56) — As of Monday, Kentucky’s average price for unleaded gas is about $3.16. Some gas stations in Lexington are charging $3.19 for unleaded gas.

According to GasBuddy, unleaded gas was about $2.80 last month, which means gas prices have jumped almost $0.40 cents.

What has pushed gas prices up in January?

Patrick De Haan, head of petroleum analyst at GasBuddy, said, “Back in mid-to-late December, we saw an arctic blast hit much of the country with very cold weather. Keep in mind that refineries are outdoors, so the extremely cold weather caused equipment failures and millions of barrels of oil to be lost.”

De Haan adds that China’s economy is having a global impact on gas prices.

“China announced it’s going to reopen its economy; loosen travel restrictions, and also at the same time, start to increase oil imports,” De Haan said. “As we started the new year, the oil releases from the strategic petroleum reserve had basically finished up, so there’s less supply coming on to the market.”

When it comes to diesel prices, data shows that Kentucky is seeing the reverse effect.


“Many of the consumers that use heating oil at home have been able to reduce demand because of the warm weather, and that has allowed diesel supply to increase pushing diesel prices lower,” De Haan said.

However, Kentuckians like Jimmy Whitis, who was pumping diesel into his truck Monday, feel differently.

“It’s gone up about 20-30 cents,” Whitis said. “I don’t like it and there’s no reason for it. We don’t have a shortage as far as I’m concerned, it’s price gauging, but that’s just my opinion.”

De Haan said due to diesel and gasoline being different, there are different dynamics at play with the prices.

“Diesel prices nationally inched up for the first time in many weeks last week, the national average for diesel rose about two cents to $4.60 cents,” De Haan said. “Russia’s war in Ukraine allows very little capacity for diesel production and that has kept diesel prices much higher.”

De Haan said he believes the U.S. has seen the lows for the last time this season, as this is just the beginning of the uptick in gas prices.

De Haan said gas prices are only going to continue to go higher because the spring and summer seasons are ahead, and that is when gas prices will be at their peak.

To view more gas prices across Kentucky use the gas price tracker at FOX 56 News.