Holiday gas prices could be on the rise; Nation average currently at 4-year high
Published 7:46 am Friday, June 29, 2018
Motorists traveling for the July 4 holiday should be ready for a hit at the pumps.
According to Gas Buddy, travelers should be ready to pay an average of $2.90 per gallon, the highest Independence Day prices since 2014 when the national average hit $3.66 per gallon.
This price hike comes after a five-week period where gas prices have actually been dropping. Oil prices surged to $73 per barrel on Wednesday according to a press release from Gas Buddy, again the highest since 2014.
A couple of reasons for this is that the State Department has ordered buyers to curb oil purchases from Iran by November as well as OPEC’s smaller than expected oil production increase last week, fueling speculation that global inventories will continue to drop.
A government report showed U.S. oil inventories dropped three times as much as expected as total petroleum exports from the U.S. hit a new record high.
While the difference may not seem significant given that current gas prices are below the peak of $2.98 per gallon hit in May.
But over the first four days of July, gas purchases will cost motorists $1.02 billion more than last year.