May 16, 2018
NEXT STOP: $3
AAA: Gas prices are up 22% this year, national average now $2.87/gal.
The good news & bad news about what will likely be the most expensive driving season in years.
I feel like this happens EVERY Summer… Why?
U.S. economic growth has boosted demand for oil which means most consumers should be able to afford to pay more at the pump, BUT wildcards in oil-producing areas may mean higher prices ahead.
“Three dollars is like a small fence. You can get through it, you can get over it. But $4 is like the electric fence in Jurassic Park. There’s no getting over that.”
Patrick DeHaan, GasBuddy analyst
WHAT’S TO BLAME?
- Seasonality: Federal & state laws require cleaner, costlier gas.
- Iran: Reimposing sanctions may constrict supply & while we don’t get our oil from Iran, Econ 101 says less global supply = higher prices.
- Saudi Arabia: World’s largest oil producer signaled it wants oil prices $80-$100/barrel. Oil just toppedA $70/bbl, a level notA seen since 2014 & upA 50% vs. last year.
Feeling Tapped Out?
Higher gas prices are on track to cost Americans an extra $38B this year, erasing about one-third of the direct benefit from Pres. Trump’s tax cuts, Morgan Stanley estimates.
If gas stays at these levels for the year, it’ll cost the average American household $450 extra.
CLICK: FOR TIPS TO $AVE
It’s expected to be the most expensive summer driving season in years –A so what can you do to lessen the pain at the pump? Click to learn the best days of week to buy gas, according to a new study from Gas Buddy.
- MAP: Where Gas Prices are the Highest:
https://gasprices.aaa.com - Get ready for the most expensive driving season in years: https://apnews.com/03a9f9e7781248a39080c9f93950f043
- Best days of the week to buy gas via GasBuddy:A https://www.gasbuddy.com/NewsRoom/PressRelease/600
GasBuddy analyzed gas price data from the period of January- March 2018 and found that the first day of the work week offers the lowest average gas price in 21 states, making it the best day to fill-up. Friday is the worst day to buy gas in 19 states, having the most expensive average.
Though there is variation in daily gas prices across different states, the consensus is that the earlier motorists fill-up during the week, the better, says Patrick DeHaan, head of petroleum analysis at GasBuddy. Following Monday, Sunday is the cheapest day to fill-up. A Conversely, Thursday follows Friday as the most expensive day to fill-up.
Consumers are missing a big opportunity at the pump when it comes to saving time and money, says DeHaan. Our data shows that most motorists are filling up on not only the most expensive day, but the busiest. Having a tank of gas last until Sunday or even Monday each week can collectively save drivers $2.6 billion, and spare the headache of not being able to find an available pump. - Higher gas prices are eating into Trump tax cut, trimming spending by Americans: https://www.usatoday.com/story/money/energy/2018/05/10/gas-prices-oil-prices-after-iran-deal-trump-tax-cuts/594719002/
- Exclusive: OPEC’s new price hawkA Saudi Arabia seeks oil as high as $100 – sources
https://www.reuters.com/article/us-opec-oil-exclusive/exclusive-opecs-new-price-hawk-saudi-arabia-seeks-oil-as-high-as-100-sources-idUSKBN1HP1LB
by Jenna Lee,
