The national gas price average has increased 40 percent since the start of the year, according to the latest data from AAA.
Gas prices are up from $2.25 to $3.13, the motorist service club reported. Ac cording to data from the Federal Reserve, this is the highest price for gas since October 2012.
“Moreover, it is not stopping there. Motorists can expect gas prices to increase another 10–20 cents through the end of August, bringing the national average well over $3.25 this summer,” AAA reports.
“Robust gasoline demand and more expensive crude oil prices are pushing gas prices higher,” said Jeanette McGee, AAA spokesperson. “We had hoped that global crude production increases would bring some relief at the pump this month, but weekend OPEC negotiations fell through with no agreement reached. As a result, crude prices are set to surge to a seven year-high.”
The price of Brent Crude started the day up but by midday WEdnesday it had fallen 1.3 percent. Despite the fall, it remains near the highest level since October of 2018.
Prices could move even higher if U.S. oil production in the Gulf of Mexico and the Gulf Coast gets hit by a tropical storm or hurricane. Tropical Storm Elsa is expected to move up through Florida, Georgia and South Carolina, missing key U.S. energy producing areas.