Filling up your car will continue to cost consumers more. The cost of gasoline has jumped exponentially since the beginning of the year, and experts predict prices will continue to rise through the summer.
The average price for a gallon of gas is $3.13, the highest price so far this year and a 40% increase since the start of 2021. It’s still lower than the 2014 peak of $3.70 and the 2008 all-time record of $4.11, according to the American Automobile Association (AAA). GasBuddy said the 2018 national average of $2.97 would actually be $3.18 in 2021 dollars.
“We believe it'll rise another 10 to 20 cents at the pump between now and the end of August,” AAA representative Jeanette McGee told CBS, who pointed to the sudden increased demand in travel, businesses restarting after COVID shutdowns, and rising oil prices.
In California, prices are already well above $4. Los Angeles drivers are paying an average of $4.33 per gallon, nearly a nine-year high, said GasBuddy.
“With imbalances in supply and demand continuing, motorists will continue digging deeper to pay for gasoline, as prices are likely headed nowhere but up until global supply starts to catch up with the surge in demand,” said GasBuddy analyst Patrick De Haan.
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A dispute between the United Arab Emirates and Saudi Arabia has hampered oil production by the Organization of Petroleum Exporting Countries (OPEC). Although the U.S. is not a member of the group, the White House said it is exerting pressure on those countries and key stakeholders.
“We want to make sure we’re doing everything we can to keep the price of gas low,” said White House Press Secretary Jen Psaki, who said that’s why President Biden would not support a gasoline tax as a way to fund his infrastructure bill. “The OPEC discussions happening on an international level are going to have an impact, and we’re engaged... in those discussions as we speak.”
In May, some drivers along the eastern seaboard resorted to hoarding gasoline after a ransomware attack on an oil pipeline caused major shortages.
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