The national average price of gas held steady at about $4.50 a gallon, but one analyst predicts drivers could face another jump in prices as many Americans prepare to hit the road for the Memorial Day weekend.
“The national average price of gasoline eased last week after surging earlier in the week as oil prices softened on hopes that diplomatic progress between the U.S. and Iran could help ease supply concerns,” Patrick de Haan, head of petroleum analysis at GasBuddy, said in a blog post. “However, that optimism faded after President Trump’s meeting with China’s Xi Jinping yielded no breakthrough on Iran, while renewed warnings against Tehran have helped oil prices rebound.”
De Haan said: “With global oil inventories trending toward historically tight levels, markets remain extremely sensitive to geopolitical developments and potential supply disruptions. As a result, gasoline and diesel prices are likely to remain volatile, and with Memorial Day approaching, any sustained increase in oil prices could begin to push retail fuel prices up again in the coming weeks.”
According to the AAA Auto Club, gas prices have risen from a national average of $2.98 on Feb. 28, the day the United States and Israel launched military strikes against Iran, to a current average of $4.51.
What causes variation in state gas prices?
According to the U.S. Energy Information Administration, regional differences in gas prices can be explained by several factors.
The agency listed the following reasons for regional gas price differences:
- Differences in state and local gas taxes.
- Distance from supply.
- Disruption in supply.
- Retail competition and operating costs.
- Environment programme.
“Retail gasoline prices are higher the further gasoline has to be transported to the point of sale because transportation costs are higher,” the agency said. “Anything that slows or stops gasoline production may result in increased bidding for the available gasoline supply. Prices at gasoline stations are often highest in locations with fewer gasoline stations.”
Which states have the highest gas prices?
In addition to the 18-percent federal gas tax that every driver pays at the pump, each state adds its own local gas tax.
Here are the top 5 states with the highest gas prices, including federal tax, according to AAA, along with their current gas price averages on May 18 and a week earlier on May 11:
1. California
- May 18 gas price average: $6.15
- May 11 gas price average: $6.15
2. Washington
- May 18 gas price average: $5.77
- May 11 gas price average: $5.76
3. Hawaii
- May 18 gas price average: $5.63
- May 11 gas price average: $5.65
4. Oregon
- May 18 gas price average: $5.33
- May 11 gas price average: $5.32
5. Alaska
- May 18 gas price average: $5.28
- May 11 gas price average: $5.26
How to Save on Gas This Weekend
Here are five tips on how to save gas before you hit the road for Memorial Day weekend:
1. Skip the premium gas
PennyHoarder.com stated that “higher-octane gas is not necessary or beneficial in most cars, so you are spending more money when you buy premium.”
2. Use gas price apps to find the cheapest gas near you
Drivers can use apps like GasBuddy, Waze or AAA to compare prices at nearby stations. Mapping apps like Apple Maps and Google Maps also now show prices at many stations when drivers use their “Gas Near Me” features.
3. Save with grocery store fuel rewards programs
Many grocery stores offer rewards programs that give shoppers points they can use for discounts at nearby gas stations. Sign up at your nearest grocery store, and make sure you link your purchases to the same account every time.
4. Use credit card points for fuel discounts
Many credit cards offer points for purchases that can later be used for things like travel. Many of those rewards can also be used for gas rebates.
5. Pay cash for gas when stations offer lower prices
Some gas stations offer lower prices to customers who pay with cash instead of credit card. In some cases, paying cash can save you 10 cents or more per gallon.
“It’s their way of avoiding card processing fees,” Pennyhorder said of gas stations that offer cash rebates.