Everyone is feeling the impact of high gas prices.
Unfortunately, experts predict that the price per gallon may still be on the rise.
Gas prices are rising
Throughout 2022 gas prices have been rising consistently. As of June 8, AAA reports that the national average for a gallon of gas is $4.955. At this time last year, the national average was $3.060. Americans are feeling the financial pressure of the price hike.
There are 13 states where gas is already over $5 a gallon:
- New Jersey
Experts are warning that the rest of the county may quickly follow suit. A report from JP Morgan predicts that the average price per gallon of gas could reach $6.20 by this August.
The predictions for crude oil prices are also bleak, according to a report by Goldman Sachs. Currently, oil is about $120 per barrel but may spike to $140 during the summer.
Why are prices still going up?
A large contributing factor to gas prices are the sanctions on Russian oil. This has lead to the scarcity of crude oil. However, many other western powers have imposed sanctions too. This has cut off the global oil supply and sent prices up.
There isn’t an end to Russia-Ukraine war on the horizon which suggests that the sanction will remain in place for awhile. With the demand increasing over the summer, prices probably won’t drop until fall.