Gas prices continued their upward trend this week. Western Pennsylvania area motorists are paying an extra 9 cents per gallon this week as prices average $2.85 for regular, self-serve gasoline. Meanwhile Indiana County is paying a penny more at an average of $2.86 per gallon.

The current run up in prices is based largely on renewed optimism on the short term health of the US economy.  Last week, investors factored in news that, while the economy is still shedding jobs, it is doing so at a much slower rate than in previous months.  Overall, the labor market can best be described as treading water, even as other signs of recovery start to emerge. 

The ever present fluctuations in the strength of the US dollar continue to impact prices on a daily basis, too. Seasonal factors are at play as well, with refineries in the process of switching over to summer blended fuels and investors counting on the potential for increased vehicle travel as the weather improves. 

The national average retail price for a gallon of self serve regular is $2.76. A year ago, the average price for a gallon of regular in Western PA was $1.99.