NewsUS News

Actions

AAA: National average gas price on track to exceed $3.24 a gallon, highest in 7 years

Gasoline Quality
Posted at 2:31 PM, Jul 07, 2021
and last updated 2021-07-07 16:52:23-04

WASHINGTON, D.C. — The national gas price average has increased 40% since the start of the year, from $2.25 a gallon on Jan. 1 to $3.13 a gallon on Tuesday, according to the American Automobile Association, otherwise known as AAA.

It’s apparently not stopping there. AAA says drivers can expect gas prices to increase another 10-20 cents through the end of August, bringing the national average over $3.25 a gallon this summer.

AAA says the last time the national average gas price was at $3.25 a gallon was in Oct. 2014. As for crude oil, the last time it was more than $76.40 was in Nov. 2014.

AAA says prices for crude will likely exceed this threshold this week and gas prices will follow suit in coming weeks, paving the way for an expensive peak driving season.

Jeanette McGee, a AAA spokesperson, says robust gasoline demand and more expensive crude oil prices are pushing gas prices higher.

“We had hoped that global crude production increases would bring some relief at the pump this month, but weekend OPEC negotiations fell through with no agreement reached. As a result, crude prices are set to surge to a seven-year high,” said McGee.