Why Are Gas Prices Rising? National Average Expected to Hit $2.80 in May
If you’ve stopped by a gas pump in the last few months (and we’re assuming you have), you’ve probably noticed a decent spike in prices. The national average has jumped 15 cents per gallon over the last month and 28 cents since this time last year. All in all, the U.S. Energy Information Administration estimates that the average family will pay nearly $200 for gas this year than in 2017.
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There are a few reasons for this spike. The first, unsurprisingly, is a rise in oil prices. “The price of West Texas Intermediate crude oil is up about 10% over the last 30 days to nearly $67 per barrel,” said Nathan Bomey, a contributor at USA Today. “Continued oil production cuts by the Organization of the Petroleum Exporting Countries have had their intended effect of bolstering prices.” Oil refineries are also seeing maintenance problems as the weather warms.
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The month-to-month rise in gas prices can easily be attributed to the time of year. As the warm weather rolls in, people begin to travel and take more road trips. This causes a natural rise in demand for gas, which in turn raises the cost.
The national average for gas prices is expected to hit nearly $2.80 by the end of May. “The EIA projected the price would average $2.74 this summer, which would rank as the highest in four years and 26 cents more than last summer,” said Bomey.
News Source: USA Today