Over the past few weeks’ local gasoline prices have creped up from the $2.40 price range into the $2.70 price per gallon. Will they top the three-dollar cost in the near future as we plan for summer outings and trips?
According to the AAA, as of late April, the national average for unleaded gasoline was $2.73 a gallon, yet many states are already seeing prices at or above the three-dollar mark. That’s a twenty-cent increase form what gas prices were in March of this year, and about 33 cents increase from a year ago.
According to a report from Wealth Authority indicated that the factor for the increase was simple economics of supply and demand. “According to market experts, gasoline demand was 9.86 million barrels one week in mid-April, a new record high.” This new record surprised experts in the field that the record was passed before the Memorial Day weekend as many take to the road during that holiday. The previous record high demand for gasoline was last summer when it reached 9.8 million barrels.
Experts think that America could see prices from $2.80 to $2.90 per gallon through the summer and into the fall. If that happens, it would be the highest gas prices in about four years.
According to the Wealth Authority report; “Aside from demand, it’s believed that there are a few other notable factors impacting the rising costs of fuel. Low unemployment directly translates to more people driving to get to work. It’s believed that the tax cuts signed into law in late 2017 are encouraging Americans to travel more. There’s also the fact that Americans love their SUV’s, which don’t score as well in fuel economy as sedans and traditional cars.
It was ten years ago that the average price at the pump for Americans was over the four-dollar mark, so the three-dollar price may seem to be acceptable to many.
A note of advise from Wealth Authority is “Are you driving around with golf clubs and other sports equipment in your trunk? What about work stuff? Anything that makes your vehicle heavier is also making it work harder, thereby impacting your fuel economy. The lighter the car, the better your fuel economy.”