The rise in oil prices has wiped out $2 gasoline in all but three states. After forecasts that the $2 average price for a gallon of regular would be the standard in over half the 50 states, the support for those forecasts have dwindled.
Part of the marker for higher gas prices is the national average. It was $2.08 a month ago. The price has risen to $2.25, according to GasBuddy.
Of course, the price of oil is always the primary component of gasoline prices. After reaching $100 in June, oil traded at just above $50 off and on for several weeks. More recently, after dropping to $43.58, it has risen to $52.65, a jump of 20% in only three days.
The three states where gas price are still under $2 are Idaho at $1.908, Utah at $1.917 and Montana at $1.955. Montana has two large refineries in Billings. Utah has five. Proximity to refineries (if they produce gasoline) affects oil prices because of low transportation costs from refinery to pump.
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State gas taxes are another major part of total cost. These taxes in the three states with sub-$2 prices are relatively low. In Montana they total $0.462 a gallon, according to the American Petroleum Institute. In Utah the total is $0.429 and in Idaho $0.434. At the other end of the spectrum, gas taxes in Pennsylvania are $0.629, in California $0.6379 and New York $0.6349.
If some analysts are correct, oil will plunge again. At least one bank, Citigroup, has forecast oil will fall to $20. A large number of experts believe it will drop to under $40 and stay there for months. If the first forecast is true, gasoline in some states will fall close to $1 a gallon. If the second is true, sub-$2 will be the average across at least half the states.
Wherever gasoline prices are headed eventually, for the time being, it is getting more expensive to drive.
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