Just ahead of the Memorial Day weekend, one of the periods when Americans are on the road in the greatest numbers, gasoline prices have moved above $3 in seven states. High gas prices will send the cost of travel for the weekend, which starts the summer, higher and hit driver’s pocketbooks as the cost of an average gallon of gas rises to the highest level this year.
The AAA forecasts that 33 million people will drive over the three-day holiday weekend. Nationwide the price per gallon of gas has reached $2.74, against a price of $2.48 a month ago, the AAA also reports. The primary cause for this is oil prices, which have risen to over $60 a barrel, after dropping to below $48 in March. Some of this increase is due to a drop in fracking because oil prices are still relatively low and not enough to support some fracking operations. Another part is due to forecasts of increased global demand.
In seven states, the pain will be particularly acute as the price of the average gallon of gasoline has spiked from below $3. These include Alaska at $3.36, California at $3.78, Hawaii at $3.27, Nevada at $3.31, Oregon at $3.03, Utah at $3.02 and Washington at $3.04.
Two things other than oil prices tend to drive up gas prices. These are state gas taxes and proximity to large refineries. As might be expected, the states with high gas prices tend to have high motor fuel taxes, according to the American Petroleum Institute. California, Hawaii, Washington, Nevada and Oregon are among the top 15 based on these taxes, which puts all of them above the national average.
Alaska, Nevada, Oregon and Washington have a no huge refineries like those in Texas. This means that some, if not all, of their gasoline has to be shipped in from other states, pushing up transportation costs.
Memorial Day may only be the start of the financial suffering for drivers. Many experts forecast gas prices will rise between the weekend and Labor Day. High gas prices are back just in time of the heavy travel season.
ALSO READ: Americans Spend Gasoline Savings on Rent, Food
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