According to AAA, all signs are pointing to higher gas prices in the not too distant future. The group reports that gasoline demand is surging while inventories are beginning to slip. Meanwhile, refineries continue their transition to summer blend fuel (which is more expensive to produce).
Monday’s national average for a gallon of regular unleaded gasoline was $2.32 for an increase of three cents over last week, up a few fractions from one month ago and 26 cents more than this time last year.
Josh Carrasco, AAA Spokesman, states, “Motorists should expect more volatility at the pump in the coming months. Declining gasoline inventories, like we saw last week, normally trigger a rise in gas prices. But increased domestic oil production could put a ceiling on historic springtime increases at the pump.”
AAA predicts that the national average for a gallon of gasoline will increase 40 cents this summer; the price is anticipated to peak at $2.70, which is 70 cents higher than it was last summer. Whether or not that peak is reached will depend of the direction of oil prices, which hit their highest price point since March 7th on Friday.
Georgia’s average gas price was $2.20 on Monday, four cents more than a week ago, two cents less than a month ago and 23 cents more than the same time last year.
In Alabama, the average price Monday was $2.08, Tennessee $2.07 and $2.30 in Florida