OPEC’s announcement of cut in oil production causes spike in Massachusetts gas prices

Westwood, MA, April 10, 2023 — Upcoming oil production cuts have led to a spike in the cost of a gallon of gas in Massachusetts.

According to AAA, the average gas price in Massachusetts is up 7 cents from last week ($3.27), averaging $3.34 per gallon. Today’s price is 4 cents higher than a month ago ($3.30), and 78 cents lower than April 10, 2022 ($4.12). Massachusetts’ average gas price is 26 cents lower than the national average.

OPEC’s announcement that it will cut production by over a million barrels per day took the oil market by surprise. In response, crude immediately surged well above $80 a barrel, although it has since struggled to stay above that mark.

“The oil market has had some time to digest the OPEC news and speculate about the reason. This has led to the price of oil stabilizing for now,” said Mary Maguire, AAA Northeast Vice President of Public and Government Affairs, “but the cost of oil accounts for more than 50% of what we pay at the pump, so drivers may not catch a break at the pump any time soon.”

AAA Northeast’s April 10 survey of fuel prices found the current national average to be 10 cents higher than last week ($3.50), averaging $3.60 a gallon. Today’s national average price is 13 cents higher than a month ago ($3.47), and is 51 cents lower than this day last year ($4.11).