Gas Could Hit $3 at the Pumps For the First Time in Seven Years
You could soon be paying more at the pumps. For the first time in seven years, gas could reach $3 a gallon.
GasBuddy is warning motorists that the national average may breach $3 per gallon by Memorial Day. The last time the national average reached $3 a gallon was more than 2,300 days ago, on October 10, 2014, but it did get close in 2018, when the national average was $2.97 per gallon.
The reason for the hike at the pumps is due to OPEC’s delay in raising production to meet the global rise in demand. Demand for oil has rebounded as vaccines have spread country to country. Early in the pandemic, OPEC cut some 10 million barrels per day of oil production.
“Extending the production cuts maintains a growing imbalance between demand and supply, and puts more pressure on oil prices to rise, should global demand continue to recover," said Patrick De Haan, head of petroleum analysis at GasBuddy." A continued recovery seems likely, led by American motorists filling their tanks at the fastest pace since the pandemic began. I predict the national average now has 70% odds of reaching $3 per gallon."
The demand for gasoline reached the highest level in nearly a year over the past few weeks and continues to rise. tTe average price for a gallon of gas in the Utica-Rome area is at $2.84. The highest average price for gas in the Utica/Rome area was $4.23 per gallon on June 21st, 2008, according to AAA.
Presidents are often credited when gas prices are low yet blamed when they are high. However, Presidents don’t actually have much effect on the prices, according to Factcheck.org.
The U.S. Energy Information Administration says more than half of the retail cost of gasoline is determined by the price of crude oil, and that price is driven, largely, by supply and demand.
Want to pay less at the pumps? GasBuddy offers tips to save money on gas amidst price increases.
Shop around: Gas prices can vary as much as $1 per gallon in metropolitan areas. Searching for the best gas prices before can ensure you pay the lowest price.
Drive mindfully: Aggressive driving can reduce gas mileage by as much as 40%.
Pay and save: Joining a gas station loyalty program or using payments services like Pay with GasBuddy can save drivers hundreds of dollars per year on gas.