Gasoline providers are running it back again with high prices as the big Labor Day weekend beckons.
Fuel price trackers cite continuing high inflation for the robust rise in gasoline prices, as prices have spiked upward to $3.81 on August 28, according to AAA. That’s about 60 cents higher than consumers saw at the beginning of 2023.
Ironically, U.S. gas prices have rebounded to where they were the week before Labor Day in 2022, when prices at the pump stood at $3.85 per barrel.
DON’T MISS: Prices at the gas pump are headed higher
U.S. gasoline prices remain stubbornly high over the past four years, as AAA noted that a gallon of gas cost $2.40 in January of 2019 and cost about $1.90 per gallon in April, 2020, just as the global pandemic landed.
Overall, California ($5.26), Washington ($5.06), Hawaii ($4.78), Oregon ($4.72), Alaska ($4.55), Nevada ($4.47), Utah ($4.22), Arizona ($4.25), Idaho ($4.12) and Illinois ($4.11) over the past week, as demand for gas and oil abated, AAA reported.
More Travel:
- A new travel term is taking over the internet (and reaching airlines and hotels)
- The 10 best airline stocks to buy now
- Airlines see a new kind of traveler at the front of the plane
One big problem that could send oil and gas prices even higher this weekend is a massive fire at the Marathon Petroleum refinery, the nation’s third-largest oil and gas refiner, in Garyville, La. on Aug. 25. Gasoline futures rose 4% on the day of the fire.
Since the Garyville refiner processes about 596,000 barrels of oil per day split between a production capacity of 265,000 bpd of gasoline and 230,000 bpd of diesel, any extended shutdown could send gasoline prices soaring even higher, experts say.
Additionally, tropical storm Idalia is expected to soon hit land near Tampa, Fla., which could cause further problems for regional oil and gas producers.
Idalia is gathering steam and should slam the greater Tampa area Wednesday morning as a potential grade three hurricane or higher, according to the National Hurricane Center.
Get exclusive access to portfolio managers and their proven investing strategies with Real Money Pro. Get started now.
