Despite being lower than previous years, many consumers feel that today’s average fuel price is “too high.”
Market data has revealed that fuel prices have jumped substantially over the last month, and consumers are noticing this price increase.
According to a report from AAA, gas prices are currently at their highest point in more than six months, with the national average reaching $2.22. The national average has now been above $2 per gallon for 40 consecutive days, and today’s average of $2.22 marks an eight cent increase on the week, and a 16 cent increase on the month; however, despite the recent price jump, the national average is still 39 cents lower than this time last year.
The national price increase is being attributed to an increase on demand, along with the recent increase in crude oil costs, which has reached new highs for 2016. The report from AAA states that further price increases are expected as the summer driving season draws near. Demand for fuel is up 5.6% over last year, and this is helping to drive fuel prices higher.
While the national average fuel prices have increased 52 cents from the 2016 low in February, fuel prices for April were at their lowest point since 2009, AAA reported. Although fuel prices are trending higher, prices are expected to remain low in comparison to previous years over the coming months.
Many customers will notice that diesel prices are currently cheaper than gasoline prices, and this trend is expected to continue. AAA indicated that the last time diesel was less expensive than gasoline was in 2009, when it remained cheaper for 48 consecutive days. The report claims that it is possible that diesel will remain cheaper than gasoline for the next three or four months due to abundant supplies and other factors.
According to AAA, California and Hawaii are reporting the nation’s highest fuel averages ($2. 80 and $2. 58, respectively), while Oklahoma and Texas are recording the lowest prices ($1.96 and $1.98 respectively).
Consumer Attitudes
According to a new survey from AAA, the sustained low fuel prices have not only les to increases in travel, but it has also changed consumer attitudes towards fuel price points. The survey revealed that:
- Half of U.S. drivers believe that $2.50 per gallon is “too high” of a price point
- More than 35% percent of Americans believe today’s national average is “too high”