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According to an industry expert, gas prices are on track to reach $ 5 a gallon this week.
The national average retail price of a gallon of regular gasoline has risen 25 cents since Memorial Day weekend, which hit a record $ 4.86 on Monday, according to AAA.
However, the national average is likely to reach $ 5 per gallon this week as oil prices continue to rise and gasoline inventories are at their lowest level for this time of year since 2014, Andy Lipow, president of Lipow Oil Associates, told FOX Business on Monday. .
GAS PRICES ON THE ROAD AT $ 5 ALL OVER THE NATIONAL IS VERY APPROVED
Prices are already 59 cents higher compared to a month ago and $ 1.81 more than a year ago, according to AAA.
These are the prices of gasoline in a bomb at a Sheetz store in Sewickley, Pennsylvania, on Monday, March 7, 2022. (Photo AP / Gene J. Puskar / AP Newsroom)
Lipow also warned that the hurricane season has begun and that storms affecting the Gulf Coast could make supplies even more difficult in an already tight market.
“A major landstorm on the Gulf Coast, home to 15% of the country’s oil production and more than 45% of the country’s refinery capacity, could lead to a significant supply disruption that would send prices even higher, “Lipow said.
GAS PRICES CAUSING “DESTRUCTION OF DEMAND” SAYS EXPERT
In addition, Lipow noted that fuel demand will increase over the summer as consumers take their vacations. However, driving habits will change with consumers making shorter trips and demand will decrease compared to last year.
States that saw the biggest price increases over the past week, according to AAA:
- Michigan 45 cents
- Illinois 41 cents
- Indiana 41 cents
- Wisconsin 39 cents
- Ohio 38 cents
- Nebraska 37 cents
- Kentucky 36 cents
- Colorado 35 cents
- Minnesota 34 cents
- Texas 32 cents