If it's up then it's stuck!

The Rise of Gas Prices

After one year of being confined indoors due to the deadly COVID-19 pandemic, Americans are ready to leave home and make the most out of the upcoming summer months. According to Travel Agent Central, 40% of Americans are planning leisure trips this summer.

With Memorial Day weekend underway and known as the kickoff to the high travel summer season those 40% of Americans can expect to pay at least $3 per gallon at the pump for gas. California residents can expect to see prices as high as $5 per gallon. It is important to understand that gas prices usually rise at the start of summer anyway as oil companies switch over to summer blend gasoline. The difference in blend costs more which in turn raises the price at the pump during the hot climate season.

So why is gas the highest it has ever been in seven years? Well, beside the recent Colonial Pipeline hack where most of the south eastern United States saw little to no gas available due to an intelligence group hacking the largest pipeline in the country the other answer is simple. Supply and demand are driving the price at the pump. After having small demand for the past year as most people were not in need of much gas due to the COVID-19 lockdown, but now that restrictions are lifted people are driving places and traveling further distances again.

The American Automobile Association (AAA) reports the national average for gas right now is $3.04 which is a significant increase to the average one year ago of $1.98. There are no expected signs of a decrease in gas so those driving may want to think twice about carpooling or rideshare if the price at the pump becomes unbearable.

Check out Gas Buddy for ways to save at the pump and put more money back into your pockets this summer.