According to AAA’s most recent data, gas prices in the United States hit a new high on Monday. A gallon of regular gasoline costs an average of $4.865 (not adjusted for inflation).
California has the highest average price at aEUR”, $6.34 aEUR”, but 10 other states have now reached the $5 mark.
The increase in prices was felt most acutely during the week when Americans traveled on roads and highways to celebrate Memorial Day.
AAA spokesperson Andrew Gross stated in a press release that “people are still fueling up despite these high costs.” “At some point drivers might change their driving habits or lifestyles due to high prices. But we are not there yet.”
According to AAA, consumers are paying more across the country. The average state’s gas price is $4.28. Some parts of the Northeast, Midwest, and West have the highest gas prices in the country.
These are the five states with the highest gas prices as of June 6, 2018.
AAA reported that the average cost of gas in the District of Columbia is $5.06. States like Indiana, Illinois, and Michigan aEUR” experienced the biggest weekly shocks. In these states, gas prices rose by more than 40c in the week.
Other nine states are poised to reach the $5 threshold, including Pennsylvania ($4.95) and Massachusetts ($4.96).
Consumer Energy Alliance President David Holt, aEUR”, who’s members include many oil and gas companies, aEUR”, called for an increase in U.S. oil production to respond to the new spike.
Holt said to NPR Monday that gasoline prices are headed for an unprecedented $5 per gallon national average.
According to the U.S. Energy Information Administration, there are many factors that contribute to high gasoline prices. These include Russia’s invasion in Ukraine and strong demand from U.S. customers outpacing what refineries have to produce.
AAA warned that the volatility of the oil market in light of EU’s plans to reduce Russian oil imports has caused it to be volatile.
Despite the eye-popping numbers on gas station signs, EIA states that gasoline costs as a percentage personal income are only slightly higher than the average since 2015. aEUR” It also says that they are lower than previous times, when oil prices soared to over $100 per barrel.
In its most recent short-term outlook, the agency stated that “the share of disposable income allocated to gasoline expenses reached its peak in 2008, just prior to the onset of a global financial crisis when oil prices had been at record highs.”
The EIA still predicts that consumers will spend approximately $450 more on gas in the United States this year than they did 2021, inflation adjusted.
