Growing demand is driving fuel prices higher as the summer driving season commences.
Over the past week, fuel prices inched higher, as fuel supply tightened while gasoline demand remained strong.
According to the recent fuel report from AAA, the national average fuel price is currently $2.36, which marks a four cent increase from last week’s Memorial Day holiday. The report also revealed that drivers are paying 14 cents per gallon more than this time last month. However, despite recent increases, prices remain relatively low compared to last year, as gas prices are still at their lowest point for this date since 2005.
Although drivers are still saving on gas over last year, the discounts are narrowing, as they are now saving only 40 cents per gallon over this date last year, AAA reported.
Demand for gasoline is still expected to reach unprecedented highs this summer driving season, as drivers continue to take to the roads at a record-setting pace. AAA reported that gasoline production continues to keep pace with demand, but unexpected events with production or distribution have potential to lead to increased prices, as millions of Americans plan to take road trips this month.
The fuel report from AAA has revealed that the states recording the highest average fuel prices are California and Hawaii ($2.83 and $2.71, respectively), while the nation’s least expensive averages are being recorded in South Carolina and Mississippi ($2.10 and $2.11, respectively).