Sign Up for FREE Daily Energy News
Canadian Flag CDN NEWS  |  US Flag US NEWS  | TIMELY. FOCUSED. REVELANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2
BREAKING NEWS:

Hazloc Heaters
Hazloc Heaters

EnergyNow Showcase

Americans Will Hit the Road With Highest Fuel Price Since 2014


English Español 简体中文 हिन्दी Português
These translations are done via Google Translate
(Bloomberg) Americans will hit the road this holiday weekend with the highest gasoline prices in seven years and the White House promising to monitor fuel costs.The national average price at the pump hit $3.045 per gallon this month, the highest since 2014, and was just a 10th of a cent below that on Friday, according to data from auto club AAA.

“The President knows that gas prices are a pain point for Americans,” White House Press Secretary Jen Psaki said in a statement Friday. “President Biden is opposed to any proposals to raise the gas tax. And it’s why we will continue to monitor prices, and are glad that Americans can get on the road again.”

Americans are paying the most for gasoline since 2014

Gasoline demand is roaring back close to levels seen before the pandemic as the world’s largest economy opens up and avid drivers take to the roads after a year of lockdowns and restrictions.

Driving Roars Back in U.S., Setting Up Gasoline for 7-Year High

Summer gasoline demand may average out to normal, with some weeks above record levels at 10 million barrels per day, said Patrick De Haan, head of petroleum analysis at GasBuddy. Any disruption to refinery supplies in the form of a hurricane or unexpected outage could send prices surging.

“The worry is that any hiccup could be made worse by the truck driver shortage, leading to slow restorations and further price implications,” De Haan said in an email.

Gas Prices Rise As Stations Run Out Of Fuel
A gas pump in Atlanta, on May 13, a few days after a criminal hack shut down the Colonial pipeline.

The weekend before the Memorial Day holiday on Monday typically marks the start of the U.S. driving season.

National demand for gasoline, as measured by the four-week average for supplied fuel, has jumped above 9 million barrels a day for the first time since March of last year, according to the U.S. Energy Information Administration.

That’s at a time when the country’s gasoline supply is straining to recover from the week-long shutdown earlier this month of the Colonial pipeline. The nation’s largest fuel pipeline, which takes gasoline and diesel from the Gulf Coast to the East Coast, was temporarily hobbled by a cyberattack, touching off regional gasoline shortages.

Gas Stations Run Dry as Pipeline Races to Recover From Hacking

Restoring regional supplies hasn’t been as easy as restarting the flow of fuels, in part because of a severe shortage of trucks and drivers needed to ferry gas from hubs to retailers. And refineries are operating at some of the lowest seasonal rates in almost a decade, as a result of the drop in demand during the pandemic.

In her statement, Psaki said that prices are in line with where they’ve been in recent years in real terms, or when discounted for inflation.

“As Americans are hitting the road, they are paying less in real terms for gas than they have on average over the last 15 years,” she said. “They’re paying about the same as they did in May 2018 and May 2019.”



Share This:



More News Articles


New SHOWCASE Directory Companies

 

RAM Industries Inc.
Becht
Osperity
RHK Hydraulic Cylinder Services Inc.