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Offbeat Gas Prices Are Going Up. Here's How Much That Will Cost You This Summer

02:06  12 may  2018
02:06  12 may  2018 Source:   time.com

$3 gas coming to a station near you

  $3 gas coming to a station near you Run-up in oil prices means that much of the country will soon have gas prices at or above $3 a gallon.Load Error

Gas prices always go up in the summer , but a confluence of factors could make this year' s driving season even pricier than usual. To read more : How Much are Tesla Model 3 Owners Saving on Gas ? [highlight].

With the national average now likely to hit a gallon for gas , that could cost you as much as an extra 0 in this summer driving season. Consumers may not be the only ones hurt by these extra costs . When gas prices began to sink in 2014 and 2015, Americans wound up spending roughly 80

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Prices at the pump are on the rise. With the national average now likely to hit $3 a gallon, that could cost you as much as an extra $250 during this upcoming summer driving season.

Over the past several summers, Americans have gotten used to cheap oil. This year, however, big energy producers like Saudi Arabia and Russia have successfully kept oil production down. With other factors like possible new sanctions against Iran, another big producer, prices have been steadily climbing, and that’s working its way to the pumps.

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That' s already above the EIA forecast of for this summer , suggesting gas prices could go even higher. The average gallon of gasoline fetched .66 on Tuesday, according to AAA. That' s up from .39 last year, just as summer driving season was beginning.

AAA projects that the national average will go up another 40 cents this summer . Gas prices tend to rise in the spring as the industry wraps up spring maintenance and switches over to summer -blend gasoline . To offset that price hike, more than 70 percent of consumers say that they’d make a

As of May 10, American drivers paid $2.84 a gallon, on average, according to the website GasBuddy. That’s up about 50 cents from a year ago.

On Tuesday, the U.S. government hiked it’s official forecast for the so-called summer driving season — which unofficially begins on Memorial Day weekend — warning that average national prices could peak at $2.97 a gallon in June. In fact, it’s already above that level in as many as 10 states, including the entire West Coast.

For drivers, those higher prices translate into hundreds of dollars, says Tom Kloza, co-founder of the Oil Price Information Service. He estimates the typical American, whose car burns about 90 gallons of gas a month, will end up spending about $1,318 on gas between May and September, assuming gas prices hit $3 during the peak months of June, July and August.

Exit from Iran nuclear deal could hit Americans' wallets

  Exit from Iran nuclear deal could hit Americans' wallets Trump's threats were already feeding into higher gas prices, and now his actions could add fuel to that fireLoad Error

Still, the current gas prices are at their highest point since 2014, when gas averaged .36 a gallon nationwide, amid instability in Iraq. You can also change the cost of gas by moving the red slider to see how bad it could get if gas gets more expensive.

At .87, the national gas price average continues to climb, partly due to President Trump’ s decision to re-impose sanctions on Iran. The global oil market shake- up means a gas price hike for Americans, as crude oil prices and U. S . gasoline prices historically behave similarly.

Based on last year’s gas prices the same amount of driving would have cost only $1,070 — nearly $250 less. In 2016, it would have cost just $1,002.

Consumers may not be the only ones hurt by these extra costs.

When gas prices began to sink in 2014 and 2015, Americans wound up spending roughly 80% of the money they saved at the pumps, with a fifth of that money going to increased spending at restaurants, according to a study by J.P. Morgan Chase.

So a big question is, ‘Which businesses will suffer if consumers turn around and start doing some belt-tightening now that gas prices are climbing’?

Of course, even at nearly $3 a gallon, prices still remain moderate by historic standards. As recently as 2014, average prices were Americans were regularly paying upwards of $3.50.

All the same, adds Kloza, gasoline is one of the few economic indicators typical Americans regularly track — and tend to see as prime indicator of their economic well being.

“People look at what gas costs every day,” he say. “I’ll tell you this, if we go above $3 a gallon the person blamed with the one in the Oval Office with the orange hair.”

Southwest's $49 fares signal summer deals despite pricier oil .
The price of jet fuel is surging, but so far the airline industry has been so competitive that carriers haven’t been able to pass on much of the cost to consumers. That means investors are bracing for lower profit margins as travelers take advantage of cheap flights. An abundance of seats in the domestic market means airlines have limited ability to boost fares, and most companies aren’t willing to trim ahead of the summer travel surge. Southwest Airlines Co. temporarily offered one-way fares as low as $49 last week as it looked to reverse a decline in bookings after a fatal accident last month.

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