We all drive our cars everyday and constantly burning fuel, which requires us to head to the petrol station and fuel back up. We are currently enjoying the cheapest gas on 4th of July in nearly a decade. Enjoy it while it lasts people, because according experts, prices will be inching higher real soon! At an  average price for gasoline now being $2.23, it is the perfect time to take that road trip you’ve been thinking about.

According to American Automobile Association (AAA), gas prices are down  down 15 cents from a month ago. Wholesale gasoline prices have already started to see an increase and will surely increase higher in the near future, according to Chief Oil Analyst, Tom Kloza. Kloza has also mentioned that the prices we are seeing today may even be the lowest its going to get for the entire summer. Of course once the demand for such low gas increases companies will most likely raise their prices, leading us to believe that we can expect to see price increases sooner rather than later.

Now lets not forget the factor that in late May, Trump also announced that he plans on selling half of the U.S. emergency oil reserves. Analysts have already predicted that with such  sudden change, prices of gasoline will definitely begin to soar. There may even be a point that the average will come up to $3! due to the price of crude oil starting to slowly rise as U.S. oil production has declined recently.

Oil demands will remain high from now to Labor day due to all the driving many families will take for vacations, according to Kloza. Excluding the factor of Trump selling the U.S. reserves, other factors still lead us to believe that prices will be increasing about 10 cents a gallon. According to Kloza the prices will probably drop again come fall, when all the gas stations finish selling the more expensive blend of gasoline for the summer months. Meanwhile, many of the states on the Western side of the country such as Indiana, Montana, South Carolina, Tennessee, and West Virginia have all raised their state taxes for gasoline on the first of July in anticipation for Summer traveling.

With the increase on the value of gasoline, the states with price increases may also have to prepare for price changes. It’s not just the prices on gas, some states have increased the taxes on gas as well, and some states have even increased both. As of now, the state with the cheapest average gas price now is South Carolina coming in at $1.90 gallon, but they shouldn’t celebrate just yet as they have implemented a 2 cent increase in gas taxes.

Photo by : Mark Buckawicki

Source:

http://money.cnn.com/2017/07/03/news/economy/gas-prices/index.html

http://money.cnn.com/2017/05/23/investing/strategic-petroleum-reserve-trump-budget-us-emergency-oil/index.html