Gas prices predicted to soar over summer months

Gas prices predicted to soar over summer months

The average price for regular unleaded gas in the Los Angeles and Long Beach areas this weekend is $3.76 per gallon, according to AAA, up almost 70 cents from previous year at this time.

All of those drivers out on the road are being greeted by the highest Memorial Day gas prices in four years according to AAA. Milani says the good news is that vehicle rentals are the cheapest they've been in about four years. Even with a two-cent increase from last week's average price, the cost is still about $3.73. At least one gas station in New York City had gas priced at $4.99 per gallon on Tuesday.

AAA says that fifteen states, including New York, New Jersey and IL, are already facing $3 average gas prices or higher.

The demand for crude oil is higher, and the supply is down, AAA says.

"It's really, really frustrating, especially since there's like a lot of disparities between gas prices and location", said Lucas Cliff, who was also filling up his auto Thursday. "Consumer confidence combined with a strong labor market and projected GDP growth are the primary reasons that holiday travel is expected to increase", said AAA spokesman Jeffrey Spring.

GasBuddy Head Analyst Patrick DeHaan says several factors are contributing to the rise in prices, including OPEC's 2016 agreement to reduce oil production and the lack of oil being exported by Venezuela.

In 2014, there were 9,967 fatalities in crashes involving a driver with a BAC of.08 or higher, accounting for 31 percent of total traffic fatalities for the year, according to AAA. The market figures new sanctions against Iran will limit its oil output. Still, 83 percent of local travelers will make their holiday trip by vehicle.

Still, he said, there's something drives can do to help improve their gas mileage: slow down. "Compared to an average of the last three Memorial Day weekends, pump prices are almost 50 cents more expensive and climbing", AAA spokeswoman Jenifer Moore said in a statement Tuesday.

Cathy Tyson of Greenville said on Wednesday afternoon that she is afraid that gas prices are going to get much worse than they are now. "The Saudis are quite enjoying $80 prices", said Michael Tran, global energy strategist at RBC Capital Markets, to CNN.

Related:

Comments

Other news