Price of Gasoline Will Rise: AAA

The primary reason for the price increase is the switchover from winter fuel to summer fuel and the beginning of planned seasonal maintenance at U.S. refineries. After the maintenance period ends and refinery production rises to usual rates, prices typically moderate. AAA believes prices could drop to a range of $3.30 to $3.40 a gallon by late June.

Last year a gallon of gasoline peaked at $3.79 on February 27. By July 7, the price had fallen to $3.47, down $0.32 a gallon. AAA notes that the decline from springtime peaks in 2011 and 2012 were $0.44 and $0.61 a gallon, respectively.

AAA also expects regional variation in gasoline prices, largely the result of access to cheaper North American crude oil. The Gulf Coast and the mid-continent could see prices drop below $3.00 a gallon. On the more heavily populated West Coast and Northeast, prices are likely to be higher due to higher taxes and imported crude.

For the full year, AAA says gasoline prices could average $3.44 or less, compared with a 2013 average price of $3.49.

According to the AAA Daily Fuel Gauge Report, the current average price for a gallon of gasoline in the United States is $3.27, slightly below the week-ago price of $3.275. A year ago a gallon of gas cost $3.546.