Gasoline Prices Surge as Summer Driving Season Heats Up

As the summer driving season kicks into high gear, the national average price for a gallon of regular gasoline has seen a notable increase in the United States, reflecting both seasonal demand and broader market dynamics, according to recent data from GasBuddy, a leading fuel price tracking service.

Patrick De Haan, Head of Petroleum Analysis at GasBuddy, was optimistic that gasoline prices were starting off on the right foot.  "June tends to be a month of smooth sailing, where we see gas prices decline in most areas, and that's a trend that looks the most likely for drivers, barring unexpected refinery snags or a tropical storm developing. The national average over Memorial Day was down ever so slightly compared to last year-after adjusting for inflation, prices were down about 10 cents per gallon. Not a terrible way to kick off summer!"

Over the past month, gasoline prices have climbed by an average of 10 cents per gallon, with some regions experiencing even steeper increases. The West Coast, in particular, has seen significant hikes due to a combination of refinery outages and stringent fuel specifications that limit supply flexibility. In California, the average price per gallon has surpassed $4.50, while states in the Midwest and Gulf Coast are seeing averages around $3.30 and $3.20, respectively.

This rise in gasoline prices comes at a time when crude oil markets are also experiencing volatility. Brent crude, a global benchmark, recently hovered around $75 per barrel, influenced by geopolitical tensions and production adjustments by OPEC+ nations. Such fluctuations in crude oil prices directly impact gasoline production costs, further contributing to the upward trend at the pump.

Looking ahead, the interplay between domestic travel demand, refinery performance, and international crude oil prices will remain critical in shaping gasoline price trends.

By Julianne Geiger for Oilprice.com

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