When Will the $4/Gallon Level Be Breached Nationwide?

According to AAA's Daily Fuel Gauge Report (link below), the average price for a gallon of regular gasoline currently sits at $3.925 nationwide, which is perilously close to $4/gallon.

Why does $4/gallon matter? Many US households list $4/gallon as the level at which they would have to make "major lifestyle changes" in order to compensate for high gasoline costs.

Gas prices are trending well above last year. According to the Daily Fuel Gauge Report, a gallon of regular gasoline cost $3.633 on this day last year. Gas prices ended up topping out at just under $4/gallon last year before retreating during the summer months.

There are several factors that are contributing to higher gasoline prices this year. To start, uneasiness over the situation in Iran is helping to lift prices. Any military operation against Iran would very likely lead to a high spike in oil prices, and this is helping to unnerve markets.

In addition, an increase in economic activity in the United States has helped to make higher gasoline prices easier to stomach, and this helped to maintain strong consumption and high prices.

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Residents of Chicago, Illinois, according to Gasbuddy.com, are currently paying the most for a gallon of regular gasoline. According to the site, Chicago residents are currently forking out $4.508 for a gallon of regular gasoline.

Other cities that are currently paying well above $4/gallon per gallon:

San Francisco, $4.382
Los Angeles, $4.330
San Diego, $4.301
Anchorage, $4.287
San Jose, $4.282

Residents of Tulsa, Oklahoma ($3.525) and Amarillo, Texas ($3.630) are currently paying the lowest amount for a gallon of regular gasoline in the nation.

Source: AAA.com - AAA's Daily Fuel Gauge Report

Filed under: General Knowledge