Lately, the back-and-forth of tariffs across North America may have consumers feeling like spectators at a tennis match.  

And the dizzying on-again off-again tariffs on imports from Canada and Mexico may be playing a part in the fluctuation of gas prices. 

While Texas is known for having cheaper gas, its metros are seeing prices rise and drop unpredictably. Now, after more increases, and with an influx of travelers ready to pour into Austin for the South by Southwest Conference and Festival, visitors should expect higher-than-normal gas prices.

Austin gas prices remain higher than other Texas metros

According to data gathered by the American Automobile Association, the last week has brought increased gas prices for most cities across the state.

In Texas’ capital, that week-to-week increase was more muted at eight cents from $2.71 per gallon last week to $2.79 this week, however, it does represent the stabilization of prices at a higher mark. 

This was also the seventh-highest increase in the state, as many cities in North Texas saw significant upticks in pricing. Cities like Dallas, Fort Worth, Denison and San Angelo all saw spikes of over 10 cents per gallon.

The Dallas area had previously been an anomaly in that it was a major metro with falling gas prices. Now, it seeing the highest increases at 18 cents week-over-week in both Dallas and Fort Worth.

Despite these notable increases, of the 27 cities surveyed in AAA’s data, 14 saw decreases in gas prices from last week to this week.

What Texas cities have the cheapest gas? And what is the statewide average?

According to the latest AAA data, Houston currently has the cheapest gas among major Texas metros at $2.66 per gallon. San Antonio sits in the middle of Texas’ metros at $2.80, just ahead of the rapidly increasing Dallas and Fort Worth metro areas — both at $2.84. 

By far, the most expensive gas in a Texas metro is in El Paso, averaging $2.97 per gallon this week. This is noticeably higher than the $2.73 state average and is the highest price among all Texas cities surveyed in AAA’s data.

While El Paso is certainly more expensive to gas up in than other cities in Texas, it is important to note that it is still a healthy amount below the national average of $3.11.

Why are gas prices increasing right now?

According to new data from the Energy Information Administration, gasoline demand is decreasing year over year, something that is expected to continue. Also, the total domestic gasoline supply dropped from 248.1 million barrels to 247.9. Gasoline production also decreased last month, averaging 9.2 million barrels per day.

These composite decreases have resulted in surging prices across the country, but especially in California — where maintenance has stymied oil production. 

As President Donald Trump threatens reciprocal tariffs across the globe, this, too, could potentially drive prices up. Canada, Mexico and Brazil are all notable suppliers of U.S. gasoline and have been threatened with tariffs by Trump.

Given that these countries make up roughly 30% of the U.S. crude oil market, an escalating trade war could provide these nations, especially Canada, with some leverage over gas prices.

Beck Andrew Salgado covers trending topics in the Austin business ecosystem for the American-Statesman. To share additional tips or insights with Salgado, email Bsalgado@gannett.com.