Record-High Demand Results in Higher Gas Prices for August
With a reported demand of 9.88 million barrels per day, August gas prices are set to hit their highest level since 2014
If you were hoping that expensive gas prices would be relegated to the beginning of the summer, the latest report from AAA presents some unwelcome news for you. At the beginning of the month, gasoline demand was at 9.88 million barrels per day, nearing an all-time record-high level. As a result, August gas prices are set to be their most expensive since 2014.
Save Some Money at the Pump: Fuel efficiency tips for getting more out of your tank
Right now, the average gas price nationwide sits at $2.87. That is equivalent to the price of gas a month ago and is $0.52 more than the average price of gas during August of 2017. Due to the extreme demand for gas this summer, inventory is tightening. At the beginning of June, that inventory was listed at 240 million bbl. By the end of July, the supply had dwindled to 231 bbl.
Have Some Fun Before the Summer Ends: Fun summer activities
Unsurprisingly, gas is at its most expensive on the West Coast. Hawaii has the highest average gas price, which currently sit at $3.76, followed closely by California, where gas costs $3.62. Yet, not all Western states are experiencing high gas prices. The average price of gas fell in New Mexico by $0.11 to $2.75.
Any number of factors could increase the average cost of gas during August. Last year, the price of gas soared in late August and early September due to Hurricane Harvey. Even if no major hurricanes hit the Atlantic Coast this year, AAA says the summer gas prices may continue to rise as the season comes to a close. If this oil-based outlook turns out to be correct, you can expect to pay quite a bit more at the pump for the remainder of the month.