If you’re planning a lot of staycations this summer and short getaways in the car, be prepared to pay more at the pump as yet another survey reports that the gas prices are on the rise. The latest Lundberg Survey reports the average regular gas price in the U.S. spiked 1.87 cents in just the past two weeks to hit $3.7098 a gallon. That price reflects an 11.29 cents bump compared to a year ago and is the highest regular gas price since May 2.
“One of big issues for gasoline is the length in the market,” said Andrew Lebow, a senior vice president at Jefferies Bache LLC in New York. “As the market moves lower there is going to be more liquidating pressure.”
“There may be further moderate rises in gasoline if crude oil keeps rising,” Trilby Lundberg, the president of Lundberg Survey, said. “The response has been muted so far considering oil prices have risen much more.”
Those living in Chicago are paying the most for gas given the $41.5 per gallon price. Those enjoying the cheapest gas prices are in Tucson, Arizona where the average is $3.37 per gallon. The current price for New York and Long Island is $3.93 per gallon.
According to the latest report, U.S. gas production increased 11 percent in the week ending June 13 and demand jumped 7.4 percent in the same time frame.
The gas survey arrives on the heels of another gas price report, this one from AAA, which claimed ongoing political and militant conflict in Iraq is responsible for the gas price increases.
“The conflict in Iraq is likely to have an impact on gas prices. So far, it’s had a minimal effect on gas prices. Prices right now are $3.41 on average,” said Mark Jenkins of AAA Oregon/Idaho.
“Anytime the price of oil goes up, that has an impact on the entire world, really. Anybody that’s using petroleum is going to be impacted by that. In the case of the United States refineries are observing crude oil and turning it into gasoline. Anytime the price of oil goes up, the price of gasoline tends to follow,” Jenkins added.
The news comes at a time when traditionally gas prices tend to go down as the summer months begin to hit but with the conflict in Iraq spreading quickly and engulfing much of the country’s oil reserves and refineries, it could be a long summer for consumers who travel largely with their vehicles.