Home / Business / Gas Prices Hit $3, Here’s Where Oil Is Most Expensive — and Cheapest — for Memorial Day

Gas Prices Hit $3, Here’s Where Oil Is Most Expensive — and Cheapest — for Memorial Day



A gallon of conventional gasoline costs less than $3.05 on average across the United States, according to AAA, up from $2.89 last month and $1.97 last year.

California has the highest American oil price at $4.20 per gallon. Hawaii is another state in the same ballpark. Normal gasoline prices are $3.93 per gallon.

Other states on the west coast are also the most expensive, with Nevada, Oregon, Washington, Utah and Alaska all averaging $3.33 a gallon or higher.

Oil prices hit their highest in 7 years, just in time for Memorial Day.

Southern states have the cheapest gas in America. Well, not really. cheapby itself, but oil in the south is much cheaper than the west.

The most expensive gas in Louisiana At $2.71 a gallon, Mississippi, Texas, Missouri, Oklahoma and Arkansas all had average oil below $2.80 a gallon.

More demand equals higher prices.

Higher oil prices were driven by a recovery in economic activity and the subsequent demand for fuel drove higher gas prices.

The start of the summer driving season this weekend will boost demand and increase downward pressure on prices. as well as the annual requirements that gas stations switch to. More expensive “summer mixes” designed to reduce seasonal smog.

But the price difference is huge at about 150,000 stations across the country. This is partly due to different taxes and fees. and partly due to the supply of fuel from refineries in specific areas.

Repeated shortages?

although the price is high But a potential gas shortage could be a serious problem this summer.

An example of what might have looked like this happened earlier this month when the Colonial Pipeline, the main artery supplying fuel from Gulf Coast refineries to the East Coast, was closed for about a week due to a cyber attack. As a result, many stations stopped serving the state.
An unusable bag covers a pump handle at a gas station May 12 in Fayetteville.  North Carolina  This is caused by the closure of the colonial pipeline due to cyber attacks.  while the shutdown is over  Experts are concerned that a shortage of fuel truck drivers could bring on repeat oil shortages this summer.
But experts aren’t too worried about other malicious hacks. This is due to the shortage of critical trucks that are qualified to drive oil tankers delivering oil to different stations.
About 20% to 25% of oil trucks are now parked because they are unmanned, according to the industry’s trade group National Tank Truck Carriers. But before the epidemic There is still a shortage of drivers. Because the industry lost a certain amount during the economic downturn. which reduced the demand for gas
This summer, the gas station runs out.

Supply shortages may initially affect a few small autonomous stations. But the concern is Even some stations that are still dry can trigger shopping, especially in beach communities and other popular tourist spots.

said Tom Kloza, head of energy analysis at Oil Price Information Service, which tracks AAA gas prices and new memories. The shortage only makes panic purchases more likely.

“I think the tendency to panic among the population is much higher than it used to be,” Kloza said. “I think we have to worry about prices, supply and crowd behavior.”


Source link