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Gasoline prices in the United States hit a new high on Monday, with a gallon of regular gasoline costing an average of $4,865 (not accounting for inflation), according to the most recent data from AAA.
The highest average price – $6.34 – is in California, but 10 states are now above the $5 mark.
Rising prices hit hard last week, when Americans hit the roads and highways for the Memorial Day holiday.
“People are still filling up, despite these high prices,” AAA spokesman Andrew Gross said in a press release. “At some point, drivers may change their daily driving habits or their lifestyle because of these high prices, but we’re not there yet.”
Where are the highest gas prices?
Consumers are paying more nationwide: No state’s average is lower than $4.28, according to AAA. Parts of the West, Midwest, and Northeast experience some of the highest gas costs in the country.
Here are the 5 states with the highest average gas prices, as of June 6:
- California: $6.34
- Nevada: $5.49
- Hawaii: $5.47
- Oregon $5.41
- Washington $5.40
And in the District of Columbia, the average cost is $5.06, AAA said. The biggest weekly shock has come in states such as Michigan, Illinois and Indiana – all of which have seen gas rise by more than 40 cents in the past week.
Nine other states look set to hit the $5 threshold, including Pennsylvania ($4.95) and Massachusetts ($4.96).
Oil and gas companies want to increase production
In response to the new spike, Consumer Energy Alliance Chairman David Holt – whose organization’s members include many oil and gas companies – called for increased oil and gas production in the United States.
“We’re in unprecedented territory with gasoline prices heading toward a national average of $5 a gallon,” Holt told NPR on Monday.
Several factors are responsible for high gasoline prices, from the effects of Russia’s invasion of Ukraine to strong demand from US consumers exceeding what refineries can produce, according to the US Energy Information Administration.
Citing oil market volatility in the face of factors such as the EU’s plan to cut nearly all Russian oil imports, AAA warned that “pump prices are likely to remain high as long as demand increases and the offer will remain tense”.
Not as bad as earlier spikes in gasoline prices, EIA says
Despite the eye-popping numbers posted on gas station signs, the EIA says that as a percentage of personal disposable income, gasoline costs are still only a little higher than the average since 2015 – and they are lower than in previous periods. when oil prices topped $100 a barrel.
“The share of personal disposable income allocated to spending on gasoline peaked in 2008, just before the onset of the global financial crisis when oil prices hit record highs,” the agency said in its recent outlook. short term.
Still, the EIA predicts that for consumers, the average U.S. household will need to spend about $450 more on gasoline this year than it did in 2021, on an inflation-adjusted basis.