The nationwide average price paid for a gallon of gas has increased 40% since the start of 2021. With the July 4 travel weekend behind us, you might expect prices to fall. But AAA predicts that because of the unique conditions of 2021, they will continue to rise.
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“Drivers can expect gas prices to increase another 10–20 cents through the end of August,” AAA Spokesperson Morgan Dean said, “bringing the national average well over $3.25 this summer.”
International Politics
“Robust gasoline demand and more expensive crude oil prices are pushing gas prices higher,” AAA Spokesperson Jeanette McGee said this week. “We had hoped that global crude production increases would bring some relief at the pump this month, but weekend OPEC negotiations fell through with no agreement reached. As a result, crude prices are set to surge to a seven-year high.”
Local Infrastructure
America has more than enough gasoline. According to the Energy Information Administration, the current stock sits about 6% below the 5-year average for July. But that minor shortfall isn’t enough to trigger a shortage.
But a shortage of tanker truck drivers means it isn’t getting to stations as fast as in a normal summer. July 4 travelers found some stations running out and waiting for a delivery.
Driving a tanker truck requires special certifications. During COVID-19-related lockdowns, many of the schools that issue the certifications shut down. Meanwhile, seeing low demand for their services, some late-career drivers retired. The resulting shortage means there’s plenty of gas in America, but the existing infrastructure is slow to move it to stations.
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