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Gas prices jump overnight in Philly region after OPEC voted to slash oil production

OPEC Plus announces steep cut in oil production which could cause more paint at pump
OPEC Plus announces steep cut in oil production which could cause more paint at pump 02:30

PENNSAUKEN, N.J. (CBS) -- Get ready to feel the pain at the pump. OPEC-Plus, which is led by Russia and Saudi Arabia, just announced its slashing oil production by 2 million barrels a day.

Another day, another dollar. But at the pump, people say it's another day, another increase.

"These prices are definitely a problem for me, I don't know why they're going back up," one woman said. 

Some on Thursday were shocked as gas prices made a noticeable increase from the previous price of around $3.32 at a South Jersey Wawa.

Experts said people should prepare for this to be an ongoing trend.

"I don't want to pay this much money for gas and driving an hour and a half," a woman said. "I need to get gas every two days now. I used to fill up for one week, but now I can't do that."

OPEC-Plus voted on Wednesday to cut production, which is more than expected and the largest cut since the pandemic started.

"A few months ago it was crazy and I have to drive an hour to get to work," one man said.   

"Less supply of crude oil equals less supply of gasoline," Stephen Schork, an oil analyst and co-founder of the Schork Report, said. "Less supply of gasoline at current demand levels equals higher prices."

Overnight, gas prices jumped about five cents in the Philadelphia region.

In Philadelphia, drivers are paying about $3.69 per gallon.

In South Jersey, you're paying $3.46. In northern Delaware, the price for a gallon is about $3.45.

The national average is $3.87. 

But some said they are choosing to view the tank as half full.

"The prices are pretty good compared to what they were," a man said. 

Analysts said retailers paying more for shipping could pass on the cost to consumers. And broader inflation could affect interest rates.

Some even suggest this timing is no coincidence.

"There's only so much control any American president has over gas prices, but voters blame the people in charge as gas prices go higher," Margaret Talev, the polling and politics managing editor of Axios, said. 

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