Pump prices have hit a 2015 high, but as supply grows and crude prices dip, gas prices may drop this summer.
Last week, gas prices reached a new 2015 national average high of $2.80 per gallon and then dropped a penny to $2.79 per gallon. Despite the high for the year, drivers are still saving an average of 89 cents per gallon compared to this time last year, according to a new report by AAA. Drivers are, however paying five cents more per gallon than they were in May.
Prices at the pump may be dropping soon though. AAA noted that gas prices are stabilizing or even dropping as refinery issues are solved. In anticipation of heavy summer car travel, gas production usually increases around this time of year, and refineries should being to produce more gasoline, which could help lower gas prices.
Crude oil prices fell late last week thanks to a stronger U.S. dollar amid concerns about Greece’s financial instability, AAA reported. The Organization of the Petroleum Exporting Countries (OPEC) reported its largest production levels since October 2012, and the U.S. also continues to produce at record levels. This means the global market is likely to remain oversupplied in the near term and any reductions in demand are expected send prices downward.
California drivers continue to pay the most for gas ($3.49), while consumers in South Carolina continue to pay the least for gas ($2.48). Seven states are now posting averages above $3 per gallon.