Gas hits a new average high of  a gallon in the US, how much further will it rise?

Gas hits a new average high of $5 a gallon in the US, how much further will it rise?

Gas hits a new average high of  a gallon in the US, how much further will it rise?

For the first time in history, the average price for a gallon of unleaded gas in the United States rose above $5 nationally as fuel demand continues to grow.

According to AAA, the average price for a gallon of gasoline reached $5,004 on Saturday, with Californians paying an average of $6.43 per gallon at the high end of the spectrum and Georgians paying $4.47 per gallon at the lowest average price. This is an increase from $3.07 a year ago and a dollar more than a national average of $4.00 per gallon reached 3 weeks ago.

While many are still nervous about what they’re paying at the pump with current prices, experts warn consumers may not even have seen the worst of it as the summer peak season approaches.

“I don’t think we’re far off,” Patrick DeHaan, chief of petroleum analysis at GasBuddy, told CNBC about the top prices. “I don’t think it would overshadow $5.50. I’d say $5.25 is the top, but again, the market is out of control.”

Some experts previously warned that prices could move even higher if things don’t stabilize, which is unlikely given that the US already had a lower supply of oil before the pandemic, and sanctions on Russian energy have also tightened supplies on a global scale.

“There is a real risk that the price could reach 6+ per gallon in August,” said Natasha Kaneva, head of global oil and commodities research at JPMorgan in May.

With prices at such a peak, even gas station owners are starting to get fed up, and one gas station in Amherst, Massachusetts has even pumped out its tanks and refused to continue selling fuel in protest at prices reaching $5 a gallon. The owner, Reynold Gladu, declined to go further with the struggles many feel at the pump, stating that after being told the price had increased by $0.40 in less than 24 hours, he had finally had enough.

Of course, Massachusetts prices aren’t even the highest in the country. California has long had the highest gas prices, and although the state average is $6.43, a gas station in Mendocino, north of San Francisco, charged $9.63 for regular, $9.72 for midgrade, $9 a week ago. .94 for premium and $9.30 for diesel.

According to Gas Buddy, the station is still charging those prices from Saturday.

gas prices Gas prices can be seen on a sign at a Chevron gas station on June 9, 2022 in Houston, Texas. Photo: Brandon Bell/Getty Images

© Copyright IBTimes 2022. All rights reserved.