Gasoline Prices Have Soared Across the States
NEW YORK – May 24, 2018
With just days to go until the Memorial Day weekend, gas prices are rising along with the temperatures.
Gasoline prices are rising on average by a penny a day, and just in time for the summer travel season. Compared to last week, the price per gallon on average in the country increased by 5 cents, and when compared to 2017 — by 52 cents.
The price hit $5 a gallon Monday at one Mobil station on 11th Avenue and 51st Street in Manhattan. Nationwide, the average price for a gallon of regular is $2.91. It's $2.97 in New Jersey. The statewide average in New York is now $3.04, and it's $3.08 in Connecticut. Topping all of them in New York City, with an average of $3.15.
So what's going on at the pumps?
According to analysts, there are several reasons for the dramatic increase.
"Most recently, it's the threatened re-imposition of very harsh sanctions against Iran, which is the fourth largest oil producer in the world," said American Automobile Association (AAA) spokesman Robert Sinclair. "We could see some really sharp increases."
Experts say prices typically rise at this time of year, but not this fast. "This will be the most expensive driving season since 2014," said Tom Kloza, global head of energy analysis for Oil Price Information Service.
Several factors have helped drive oil prices higher. A wave of global economic growth has driven up demand for oil. At the same time, production cutbacks initiated by OPEC last year have helped whittle down oil supplies.
In the U.S. oil supplies were running 1.1 million barrels lower at the start of this summer's driving season, which runs from April through September, than a year ago, according to the U.S. Energy Information Administration.
That has amplified the typical increase in gas prices seen at this time of year. Pump prices normally rise as demand increases from families going on vacation and taking to the highways on road trips. Already, U.S. consumer demand for gasoline hit a record high for the month of April, according to the EIA.