Pump Prices at 12-year Low on Fourth of July!

gas prices in US

Gas prices are at a 12 year low this Fourth of July and that’s awesome news for American drivers, but experts already warn about an imminent increase. So, enjoy it while it lasts, that’s the word of the day. Currently speaking, the average price per gallon (regular) in the United States is $2,23, which is roughly 15 cents down from June, as per AAA numbers.

However, according to Tom Kloza, the guy who tracks gas prices for AAA as chief oil analysts at Oil Price Information Service, the era of relatively cheap gasoline is almost over, as we should expect prices to go up again, as early as this week. Kloza was quoted by CNN as saying:

“I think today’s number might be about as low as it gets this summer,”

With the US oil production declining in recent months, the price of crude is already starting to go up slowly but surely. However, the demand for oil, regardless of the price will be steady, at least for the time being.

These two factors combined, i.e. a slow increase in crude prices and strong demand may end up sending gas prices up. Kloza said that we should expect about 10 cents per gallon extra in the near future, but the good news is that come fall, the prices will drop again most probably, as gas stations will stop selling the premium varieties which are in strong demand during the summer season as per the fight against smog in big cities.

Until that day, it’s worth mentioning that states like South Carolina, Montana, Tennessee, Indiana and West Virginia decided to raise gasoline taxes starting with July 1. However, South Carolina still boasts its cheapest average gas price in the United States, with $1,90 per gallon, despite the fact that it already increased gas taxes with 2 cents per gallon.