Prices see typical spring run up, but relief is on the way.
Gasoline prices have shot up by nearly 30 cents per gallon in the past month with the national average hitting $2.65 per gallon. According to experts, a spring increase is common because refiners clear their inventories of winter grade gasoline in preparation to sell the more expensive and more difficult to make summer gas which is mandated by the EPA.
Prices are up 60 cents per gallon since they bottomed in late January – a 30% increase and a typical spring move. Despite the increase, prices are still more than $1.00 per gallon less than what they were last year. Analysts believe that prices are likely to peak in the next two weeks and most don’t expect the national average to surpass $2.75 per gallon. Typically prices see a 10-15% drop following the spring high and most market-watchers believe this year will produce similar results. That could push the national average to about $2.40 by July 4th.
California has seen the biggest increase in the past 30 days, with prices sky-rocketing by almost 60 cents per gallon to $3.71 per gallon. It is one of a few states with an average over $3.00 per gallon. The others states are Hawaii, Alaska and Nevada.
Meantime, diesel prices have edged up by about 10 cents per gallon in the past month. Diesel prices are likely to fade as well and could spend most of the summer below $2.70 per gallon.
|WEX Monthly PPG Average Report for April 2015|
|Los Angeles, CA||$3.34||$3.10|
|New Orleans, LA||$2.22||$2.66|
|New York, NY||$2.76||$3.69|
|San Francisco, CA||$3.44||$3.44|
|St. Louis, MO||$2.42||$2.43|
|National Average (US)||$2.46||$2.77