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Business

US gas prices reached record highs during Memorial Day trips




Americans on the road on Memorial Day weekend were hit by record high gas prices as the average cost of a gallon of fuel reached $ 4.62 across the country.

Motorists in California felt the strongest squeeze Monday, with some gas stations in parts of Los Angeles, the San Francisco Bay Area and the Yosemite region charging over $ 7.25 per gallon – more than the federal minimum wage.

On average, gas in the Golden State costs $ 6.15 per gallon, more than in any other country, according to AAA. California residents have higher rates due to taxes and surcharges added to the basic cost of fuel.

The nationwide average, meanwhile, represents a 40% increase from the beginning of the year. It is also well above last year̵[ads1]7;s $ 3.04 per gallon level.

Analysts predict that more states will cross the $ 5 per gallon average by the Fourth of July holiday, as demand is expected to increase while supply remains tight.

US gas prices reached record highs during Memorial Day trips
The average cost of a gallon of fuel rose to $ 4.62 nationwide on Monday, according to AAA.
AFP via Getty Images
The West Texas Intermediate, the US benchmark index, reached more than 116 dollars a barrel on Monday.
The West Texas Intermediate, the US benchmark index, reached more than 116 dollars a barrel on Monday.
Gary Hershorn / Getty Images
The European Union will meet on Monday and Tuesday to discuss a sixth package of sanctions against Russia over the invasion of Ukraine.
The European Union will meet on Monday and Tuesday to discuss a sixth package of sanctions against Russia over the invasion of Ukraine.
Steve Pfost / Newsday RM via Getty Images

“I do not think so many people will go down the road, and if they do, I think a good deal will stay close to home,” Patrick De Haan, head of petroleum analysis at GasBuddy, told CNBC.

“They should definitely be a noticeable shock, but my impression is that people do not drive that far. The concern is high prices that keep people a little closer.”

De Haan added: “It is also work from home that has changed things. There is a strong subgroup of people who can basically work from the road all the time. “

The holiday travel season usually brings with it much higher demand, which is likely to cause prices to rise further, according to analysts.
The holiday travel season usually brings with it much higher demand, which is likely to cause prices to rise further, according to analysts.
Getty pictures
The increase in demand for the abolition of coronavirus-related shutdown measures as well as the ongoing Russian invasion of Ukraine have put pressure on the oil markets.
The increase in demand for the abolition of coronavirus-related shutdown measures as well as the ongoing Russian invasion of Ukraine have put pressure on the oil markets.
DON EMMERT / AFP via Getty Images

Global oil prices also continue to rise. Brent oil, the international benchmark index, passed $ 120 a barrel, reaching a two-month high.

The West Texas Intermediate, the US benchmark index, reached more than 116 dollars a barrel on Monday.

The increase in demand for the abolition of coronavirus-related shutdown measures as well as the ongoing Russian invasion of Ukraine have put pressure on the oil markets.

The European Union will meet on Monday and Tuesday to discuss a sixth package of sanctions against Russia over the invasion of Ukraine.

EU countries failed to agree on a Russian oil import ban despite bargaining at the last minute before the summit began in Brussels on Monday.

But leaders of the 27 EU countries will in principle agree to an oil embargo, showed a draft of the summit’s conclusions, while leaving the practical details and difficult decisions to later.

With Post wires



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