Gas Prices Could Head Higher This Summer

By: Anneken Tappe · March 27, 2024 · Reading Time: 2 minutes

Summer Gas Surge

Gas prices may head north again this summer, rising crude oil prices and supply shortfalls could drive the national average back to $4 per gallon headed into the summer, according to AAA.

Two years ago, the average price of gas in the U.S. hit an all-time high of more than $5 per gallon in summer 2022. Prices have moderated again since then, falling back below $3.20 as of January 2024. But perhaps not for long.

Supply and Demand

Global supply concerns are driving oil prices higher. Inventories are lingering at their lowest level since December, driven by unexpected outages and maintenance at U.S. refineries. And what affects the oil price, also affects gasoline. Gasoline futures settled at $2.70 per gallon on Tuesday, while the national average price at the pump currently sits at $3.54 per gallon.

Gas demand historically peaks in the warmer months when people travel more and go on roadtrips. On top of that, EPA regulations require a less pollutive and more expensive “summer blend” of gas.

While the cost of gas still has a ways to go before matching the 2022 highs, current conditions seem poised for future increases at the pump.

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