Get Ready for $5 Gas This Summer, Analyst Warns

Number of the Day: The most relevant or interesting figure in personal finance

NOTD - $5

That’s how expensive the average gallon of gas will get this summer in the U.S., according to one analyst.

Gas set a record again on Wednesday, this time shooting up 5 cents to hit a national average of $4.67 for a gallon of regular unleaded, a new high for the fifth day in a row. Oil industry analysts are increasingly warning drivers that still higher prices are coming this summer. Patrick De Haan, head petroleum analyst at gas price tracking website GasBuddy, said on Wednesday that it’s just a matter of time before the national average for a gallon of gas hits the $5 mark. JPMorgan Chase has predicted gas could get as high as $6.20 a gallon nationwide.

One leading driver of the sky-high prices is a decline in production capacity among U.S. refiners of crude oil, which is used to make gasoline. Another is the ban on Russian oil by countries around the globe, meant to punish Russia for its invasion of Ukraine. Russia is the third largest producer of oil, and the sanctions have sent the global price of oil higher, and the price of gas with it.

With the summer road-trip season already begun, travelers will be spending a lot more to get where they’re going: Wednesday’s price at the pump was 53% higher than it was a year ago. 

Have a question, comment, or story to share? You can reach Terry at tlane@thebalance.com.

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Sources
The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1.  AAA. “AAA Gas Prices.”

  2. Fuel Insights. “GAS PRICES TICK HIGHER, STORM ON HORIZON AS EU BANS RUSSIAN OIL.”

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