Americans hitting the road this weekend greeted Memorial Day Standard gas prices The average gallon of fuel cost $4.62 nationwide.
California motorists were feeling the strongest of the crisis on Monday, with some gas stations in parts of Los Angeles, the San Francisco Bay Area and Yosemite area charging upwards of $7.25 per gallon — more than the federal minimum wage.
On average, gas in the Golden State costs $6.15 a gallon, more than any other in the country, according to the AAA. California burdened with high prices Because of taxes and surcharges that have been added to the base fuel cost.
Meanwhile, the national average is a 40% increase over the beginning of the year. It’s also well above $3.04 a gallon last year.
Analysts expect more states to surpass the $5 a gallon average by the Fourth of July holiday Where demand is expected to increase While supply is still scarce.
“I don’t think a lot of people are going to hit the road, and if they do, I think a good portion will stay close to home,” said Patrick de Haan, head of petroleum analysis at GasBuddy. He told CNBC.
“Sure it must be a noticeable bump, but my impression is that people don’t drive long distances. The concern is the higher prices that bring people a little closer.”
De Haan added, “There is also the work from home that has changed things. There is a strong subset of people who can basically work from the road all the time.”
International oil prices also continued to rise. Brent crude, the international benchmark, exceeded $120 a barrel, hitting a two-month high.
West Texas Intermediate crude, the US benchmark, reached more than $116 a barrel on Monday.
The surge in demand after the lifting of coronavirus-related lockdown measures as well as the ongoing Russian invasion of Ukraine has put pressure on oil markets.
The European Union meets on Monday and Tuesday to discuss the sixth package of sanctions against Russia over its invasion of Ukraine.
European Union countries failed to agree to ban Russian oil imports despite last-minute haggling ahead of the summit in Brussels on Monday.
A draft outcome of their summit showed that the leaders of 27 European Union countries would agree in principle to an oil embargo, while leaving practical details and hard decisions until later.
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