If you think gas is high now, wait until you run out of fuel in August. Recent JP Morgan Research notes that the average national retail price of one gallon of regular gasoline is expected to exceed $ 6 this summer.
Just two days ago, the national average broke another record, reaching 5 4.56 per gallon, according to the AAA, which is already close to 50 cents from a month ago, and $ 1.52 from this time last year.
JPMorgan says prices could rise another 37% by August, hitting the price tag 20 6.20 per gallon national average.
The projection is due to the “expectation of strong driving demand” during the summer driving season, and includes holidays such as Memorial Day and Labor Day, analysts added.
“Typically, refiners produce more gasoline before the summer road-trip season, creating inventory,” analysts continued. However, since the middle of last year, “gasoline inventories have declined seasonally and today sit at the lowest seasonal level since 2019,” analysts continued.
Analysts warn that “the balance of gasoline on the east coast has tightened, reaching its lowest level since 2011.”
Los Angeles has become the second metro alongside San Francisco, where the average cost of a gallon of gasoline exceeds $ 6, Fox Business reports.
However, for the first time, the average cost of a gallon of gas in all 50 states has gone above $ 4.