Originally published April 18, 2023 1:27 am PDT
Gas prices have been on the rise, the average price for a gallon of regular unleaded gasoline in the U.S. now standing at $3.68, up from $3.45 one month ago, according to a AAA report.
This is due to a rise in oil prices, which accounts for more than half the price of a gallon of gas.
While gas prices are still lower than they were a year ago, analysts warn that prices still have room to rise.
“Consumers confronted by inflated prices for basic necessities will now have to spread their budgets even more thinly,” the International Energy Agency (IEA) stated recently. “This augurs badly for the economic recovery and growth.”
Gas prices typically go up in the summer due to increased demand and the higher cost of producing summer-grade fuel.
According to Patrick De Haan, head of petroleum analysis at GasBuddy, the worst is yet to come.
“Oil prices remain a wildcard, but we’re likely a few weeks away from seeing the national average peak,” De Haan said. “Whether it hits $4 per gallon or not is still perhaps a 50/50 chance.”
California has the highest price of gas in the U.S., averaging of $4.92 per gallon, while Mississippi has the lowest, with an average of $3.17 per gallon.