By Camila Hawking
According to AAA, American drivers can expect to pay more to fill the tank, at least until the end of August. The average price of gasoline across the country rose to $ 3.13, the highest of the year, up 40% from January 1. And fuel costs are not expected to fall soon. “We expect the pump to rise another 10 to 20 cents between now and the end of August,” AAA spokeswoman Jeanette McGee told CBS MoneyWatch.
The main factors behind the surge in gasoline prices are: rising global oil prices, resumption of operations as COVID-19 eases in most of the United States, and stagnant travel demand. Gas demand around the United States has reached a new peak since the coronavirus erupted in 2020 when Americans went out on the road for their July 4 vacation, according to data from travel and navigation app GasBuddy. Did. Nearly 44 million Americans were expected to travel by car on AAA’s Independence Day weekend. The national average gasoline price of $ 3.13 was below the $ 3.70 reached in 2014, and Americans can expect prices to level off and fall in September, McGee said. According to AAA, the record high price for a gallon of regular gas in July 2008 was $ 4.11. According to AAA, fuel prices rose the most in Idaho last week, with gas prices rising 10 cents. Other states with recent spikes: Alaska (up 9 cents). Colorado, Oregon, Washington (7 cents); Ohio, Utah, Wyoming (6 cents); Montana and Nevada (5 cents). Mississippi has the cheapest gas at $ 2.75 a gallon and California between $4.25 and $5.25 per gallon!
Americans may choose to eat out less or choose a closer destination due to the high price of pumps, but motor clubs have gas on average over $ 3.50 nationwide to stop people from traveling. I estimate that it must rise. “People say they’ll start making changes for $ 3.25,” says McGee. In a statement, Dehan said, “For now, the imbalance between supply and demand continues, and prices are likely to go nowhere until global supply begins to catch up with the surge in demand. Hands will continue to dig deeper into gasoline payments. ”
The rise is rooted in a move to a six-year high for crude oil, as the conflict between Saudi Arabia and the United Arab Emirates has upset negotiations by OPEC and its allies to boost oil production. “The failure of OPEC and its non-member Russia to increase supply has pushed the spot price of Brent crude to a high of $ 70 a barrel,” said an energy analyst at the Eurasian Group. Apart from this, AAA’s McGee urges drivers to stay calm when they encounter a gas station covered with a bag that indicates low or no fuel, and some of the fuel tank driver shortages. Explain that you are delaying delivery. But the impact is limited, “don’t panic because the US has enough supply, as it doesn’t really affect gasoline prices,” she said.
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