The Long Holiday: Gas Prices Expected to Spike on July 4 and Continue Increasing Throughout the Summer
Americans are expected to face the highest Independence Day gasoline prices in seven years as consumer prices continue to climb amid the economic recovery, CNBC reported.
Average U.S. gasoline prices have rocketed up to $3.13 per gallon as of Friday, roughly $1 more than the average a year ago, according to AAA.
In California, home to the highest gasoline prices, the average price of gas has increased more than a dollar since last year and is currently estimated at $4.29 per gallon.
“Usually prices peak in April to May,” GasBuddy gasoline price expert Patrick De Haan told CNBC.
“This year is abnormal. You have GDP numbers accelerating into the summer, and demand for gasoline is accelerating.”
Increasing crude oil prices are driving the gasoline price surge and are expected to continue increasing until the end of the summer. But De Haan said consumers could even begin to see prices cooling down by the end of July.
“I think gasoline prices will plateau in the next three to six weeks,” De Haan said.
“It’s probably going to be more like a 10 cent to 25 cent increase, but it’s hard to nail down because of the economy.”
John Kilduff, a partner at financial services company Again Capital, said gas prices will not slow down in the short term because the pandemic has changed how people prefer to travel.
“We don’t expect to see demand trail off like we’ve seen typically,” Kilduff told CNBC.
“The pandemic has changed the demand pattern. That’s going to keep the pressure on gasoline supplies as people shun mass transit. There’s just not going to be post July 4th relief at the pump that we’re used to seeing.”
“It’s going to be a long, hot summer in terms of what you pay for gasoline,” he added.
Meanwhile, the White House tweeted Thursday that Americans can expect to spend 16 cents less on July 4 food compared to last year. However, Republican New York Rep. Elise Stefanik noted the increasing gas prices.
Planning a cookout this year? Ketchup on the news. According to the Farm Bureau, the cost of a 4th of July BBQ is down from last year. It’s a fact you must-hear(d). Hot dog, the Biden economic plan is working. And that’s something we can all relish. pic.twitter.com/7h9qLauIbC
— The White House (@WhiteHouse) July 1, 2021
In the Biden economy, #NY21 families pay more at the pump⛽️
“There will be no break at the gas pump for New Yorkers hitting the road for the holiday.
The state hasn’t seen prices like these for the 4th of July Weekend since 2014.” #BidensEconomicCrisis #BidensEnergyCrisis https://t.co/pUBUd6ClWB
— Elise Stefanik (@EliseStefanik) July 1, 2021
The consumer price index, a common inflation measurement, increased more between June 2020 and May than it has in any other 12-month period since August 2008, recent government data showed.
American consumers’ fear of inflation has also hit new highs as gasoline, food, health care and home prices have ticked up in recent months.
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