Why is the price of gasoline rising in the United States?
Gasoline prices in the United States have reached their highest level in months. Find out why prices are going up and where gas is most expensive.
In June of last year, the price of gasoline in the United States reached a record after registering the highest price in history at $5.016 per gallon, according to the American Automobile Association.
Subsequently, the price began to fall. However, this week, fuel prices reached their highest level in months, recording eight-month highs. On July 27, the average price of gas in the country was $3.714, the highest level since November of last year.
A day earlier, the national average was $3.687 while last week it was $3.58. Why has the price of gas gone up so much? Will its price keep rising? Here is the explanation for the increase.
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Why is the price of gasoline rising in the United States?
Gas prices in the US hit an eight-month high amid rising oil prices. The price of crude oil has gone up more than $10 a barrel over the past month to a three-month high of more than $80.
The increase in oil prices has been caused by production cuts by the Organization of the Petroleum Exporting Countries and allies (OPEC+). Prices have also risen due to the impact of shutdowns at US refineries, related to the intense summer heat.
According to Andy Gross, AAA’s national spokesperson, oil supplies are limited, per NBC News. Prices could also continue to be affected as the US enters peak hurricane season.
According to the National Hurricane Center, the highest storm activity occurs from mid-August to mid-October. Depending on storm paths, domestic crude production could decline as Gulf Coast oil sites close.
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The states with the cheapest and most expensive gasoline
Even though the national average is $3.714, there are some states that are experiencing much higher prices, as well as lower ones.
The states with the most expensive gasoline are: California ($4.935), Washington ($4.932), Hawaii ($4.697), Oregon ($4.59) and Alaska ($4.316).
On the other end of the spectrum, the states with the lowest prices are: Mississippi ($3.178), Alabama ($3.295), Louisiana ($3.296), Arkansas ($3.348) and Tennessee ($3.352).