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Why Massachusetts gas prices have been creeping up
Editor's Note: This is an excerpt from WBUR's daily morning newsletter, WBUR Today. If you like what you read and want it in your inbox, sign up here.
If you want to get an early start on Fourth of July celebrations, Somerville is setting off its fireworks tonight — the first in the Boston area ahead of next week's holiday. (You can check the full town-by-town fireworks calendar in Massachusetts here.)
But first, the news.
Paying up: After months of steady gas prices, prices at the pump are creeping back up. According to AAA Northeast, the average cost of regular gas in Massachusetts is up to $3.09 a gallon as of today — a 10-cent jump over the last nine days. And as AAA spokesperson Mark Schieldrop told WBUR's Amy Sokolow, the cause of the increase is split "50/50" between two main reasons — one domestic and one abroad.
- First, let's look abroad: The recent fighting between Israel and Iran drove the price of oil up by about $10 a barrel earlier this month, according to Schieldrop. That's a much more modest impact compared to when gas prices hit record highs in the aftermath of Russia's invasion of Ukraine in 2022. Still, Schieldrop said Iran is a "significant" oil producer; while the country wouldn't "make or break the entire market," the now-paused fighting "certainly rattled" it, he said.
- The second reason is a bit more mundane: seasonal demand. Americans tend to consume more gas during the summer, especially as we near the busy Fourth of July travel weekend. " We were expecting prices to begin ticking up just a little bit, even before the situation in the Middle East really unfolded," Scheildrop said.
- The silver lining: Massachusetts gas prices are about 13 cents below the national average — and more than 30 cents lower than last year at this time. Scheildrop says that's because " we have really ample" supply, which can cushion against international volatility. "The United States is the world's leading producer of oil and gas, and we're pretty independent when it comes to energy," he said.
- What to watch for: Scheildrop says the big concern is if Iran closes the Strait of Hormuz. "That could lead prices to go higher," he said. A large fraction of the world's oil and liquefied gas travels through the strait, which links the Persian Gulf to the ocean. Iran has never actually blocked the strait, but the country's parliament recently voiced support for the idea as retaliation. Though, as NPR's Planet Money team explains, there are several reasons that seems unlikely.
Another one: Less than 24 hours after trading Jrue Holiday, the Celtics have also reportedly agreed to ship out Kristaps Porzingis as they work to trim payroll costs. As part of the three-team deal with the Atlanta Hawks and Brooklyn Nets, Boston will get forward Georges Niang (a Lawrence native who played high school ball in New Hampshire) and a future second-round draft pick in return.
- Could more trades be ahead? ESPN reports the Celtics are also getting offers for Jaylen Brown and Derrick White, but leans toward keeping them, since the team has now cut enough salary to get under that crucial "second apron" threshold.
He's running (again): Scott Brown is taking a second shot at representing a second state in the U.S. Senate. The former Massachusetts senator announced this morning that he's jumping into the open New Hampshire race to succeed retiring Sen. Jeanne Shaheen, who he lost to in 2014. Brown is the first major Republican to declare his candidacy; Democratic Rep. Chris Pappas is already running for the seat.
Meet the new guy: Massachusetts has a new economic development secretary: Eric Paley. Gov. Maura Healey appointed the venture capitalist to the role yesterday, replacing Yvonne Hao, who resigned this past spring. Paley will start the job in September, overseeing several quasi-public agencies that try to steer the state's business economy. According to The Boston Globe, Hao personally reached out to Paley to persuade him to apply for the job. The two go back to Hao's days leading the Somerville startup PillPack, which Paley's VC firm Founder Collective invested in.
Meanwhile on Beacon Hill: Healey officially signed the $1.3 billion spending deal yesterday to allocate money from the state's millionaire's surtax. WBUR's Walter Wuthmann reports that it includes more than $530 million to help the MBTA cover a $700 million budget gap, plus $240 million for special education and $100 million for technical education. Healey says the revenue is critical amid the specter of federal funding cuts. "Right now, we cannot count on the president or Congress's support for investments much needed in our infrastructure, including our schools," she said.
Heads up: The Callahan Tunnel (aka the one you take from downtown Boston to East Boston and Logan Airport) is closing overnight today from 11 p.m. until 5 a.m. tomorrow so that crews can do maintenance work on the North End's Richmond Street Bridge. Prepare to be detoured if you have an early Thursday flight.
P.S.— The votes are in, and WBUR listeners' favorite local Tiny Desk submission this year is from Cambridge-bred singer-songwriter YANINA. Click here to watch her entry of her original earworm, “We’re the Clowns,” which was filmed in a local coffee shop. And tune in tomorrow for the reveal of our panel of judges' favorite local entry.
