Motorists face a new and unwanted milestone: the price of gasoline is now at least $ 4 per gallon in every U.S. state, the first for the nation, according to AAA.
The average price per gallon hit a new record $ 4.52 on Tuesday, the auto group said.
LAST: The average price of gasoline in the United States has exceeded $ 4.50 per gallon, a record.
– Patrick De Haan @️📊 (@GasBuddyGuy) May 16, 2022
California drivers are facing the biggest hit, with prices at Golden State hitting a new record of $ 6.02 per gallon, AAA said. Rising gasoline prices are contributing to the highest inflation in four decades and a bite is being taken in the consumer portfolio.
As consumers spend more on gas, they are reducing other consumer goods and services, JPMorgan said in a May 13 report.
The reason for the recent rise in gas prices is due to a couple of factors, AAA said.
First, crude oil prices "remain volatile" and pump prices are likely to remain high until crude oil falls below $ 105 a barrel. The reference Brent crude is currently trading at about $ 109 a barrel.
Second, gas stations are switching to their gasoline summer combinations, which according to the AAA adds up to 10 cents per gallon to motorists ’costs. The change to the mix occurs annually and is not related to the Biden Administration plan allow E15 gasolineand will be sold during the summer. This blend, which is 15% ethanol, is usually banned from June 1 to September 15.
As of Monday, there were three states where gas could still be found at an average price of less than $ 4 a gallon: Georgia, Kansas, and Oklahoma. But with prices jumping on Tuesday, those states joined the $ 4-per-gallon club, with prices reaching $ 4.06 in Georgia; $ 4 in Kansas; and $ 4.01 in Oklahoma.
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