Why $3 Gas Is Coming to a Station Near You
The price of gas is on the rise, and analysts predict that the average price will be over $3 in [...]
The price of gas is on the rise, and analysts predict that the average price will be over $3 in the United States very soon.
The current average price of gasoline is $2.81, according to a report by CNN Money. That's up three cents from last week, and 15 cents from last month. Prices haven't been this high since 2014, and it may have something to do with President Donald Trump.
The president has signalled his intent to impose new sanctions on Iran, which is where some of the gas price panic is stemming from. CNN reports that the Oil Price Information Service predicts prices to rise to $3 by the end of this month.
The good news, however, is that those same analysts expect the prices to begin creeping back down shortly after they peak. Tom Kloza, the organization's chief oil analyst, said that the fervor will subside around May 12, which is the deadline for the president's decision on Iran. At that point, he will either re-certify the agreement along with European allies, or opt out.
"Most of this recent increase has to do with speculation that the Trump administration will take a hard line with Iran," he explained.
Add to that the normal seasonal fluctuation in gas prices. Typically, the month before Memorial Day sees refineries and gas stations gearing up for the summer, where people tend to do more driving.
So far, about 16 percent of gas stations are reportedly charging three dollars per gallon or more. On this day last year, that number was less than 4 percent.
Currently, gas prices are at their highest along the West Coast of the United States. They're also over $3 on average in Alaska, Hawaii, Idaho, Nevado and Utah, according to the outlet. On the East Coast, only Pennsylvania currently has prices that high.
During the last price hike four years ago, gas prices reached a height of $3.70 per gallon. That was also around this time of year.
President Trump's decision on Iron could effect mileage for many commuters and vacationers this summer. He has repeatedly described the country as a "murderous regime" and blamed it for problems throughout the Middle East. He has railed against the current parameters of the Iran deal, saying it does not go far enough to demilitarize the country.
Overall, the president's rhetoric suggests that he doesn't believe Iran will follow the standards of the agreement. He has also pointed out Iran's support for terrist groups including Hezbollah and Hamas in the region, and its continued support for Bashar Assad, the President of Syria.1comments