Current Gasoline Price Average Higher than Last Year

Average current gasoline prices are higher compared to the same period last year, a scenario not seen since April.

Drivers are presently spending about $3.66 a gallon, a cent more than last year’s price during the same period. The most recent occurrence of this status occurred on the 23rd of April, said the AAA. Gasoline prices are higher by 10 percent from the start of July and the current gasoline prices may keep on increasing until Labor Day, according to experts.

Several drivers, especially in the West Coast and Midwest, are seeing even higher gas prices with a surge of almost 40 cents a¬† gallon since the past week in some areas in Michigan, Wisconsin and Illinois due to pipeline and refinery problems. For the present week, motorists in Oregon, California and Washington are seeing a huge leap in pump prices after Chevron’s refinery caught fire, leading to a partial outage.

The gas prices today reflect a steady increase all over the country in conjunction with a rise in the oil price per barrel.

OPIS chief oil analyst Mr. Tom Kloza said that the current gasoline price average in 19 states is higher than they were compared to the same day last year. The analyst added that he expects more price increases in the future.

Kloza anticipates the gas prices today to drop after Labor Day at a rate below $3.50 per gallon in most cities, even as low as $3 per gallon in some cities nationwide.

However, Californians will be pleased if gasoline prices stay lower than $4 per gallon after a recent fire in Chevron’s refinery near San Francisco. The refinery’s output is about 16% of the daily gas consumption in the West Coast.

Some cities in California may see gasoline prices at $4, though they should stabilize is long as no further refinery issues occur. California’s current gas price average is $3.9274, a 7.4 cent rise since the start of the week said the AAA. ¬†Analysts think that other refineries can compensate for the lost output of Chevron to help limit the gas price increase.

By: Chris Termeer