Gas Prices Headed For $3 A Gallon By Memorial Day
As the summer driving season kicks off Memorial Day weekend, U.S. government forecasters predict gas prices will touch $3 a gallon. In California, this week, it's already pushing $3.70 per gallon.
The American Automobile Association lists the average price of regular unleaded in Arizona at about 7 cents higher than the national average.
"We've seen oil prices trade at a multi-year high," said Michelle Donati with AAA Arizona. "We've enjoyed the last few years of relatively stable oil prices. But, when oil prices go up especially as sharply as they have to a multi-year high it is going to cause gas prices to increase."
The last time the prices spiked this sharply, she said, was in 2014.
Oil supply prices make up well over half of the cost of a gallon of gasoline.
Donati said oil prices were volatile as word spread of the U.S. decision to pull out of the nuclear agreement with Iran, the fifth largest oil producer in the world.
"Nothing tangible actually has to happen for the price to increase or become volatile," Donati explained. "Just the threat of something happening, or the conversation of something happening can cause it to increase.
Donati said that will dictate what motorists pay for the remainder of summer. She expects Arizona will hit $3 by Memorial Day, with higher prices in northern Arizona and the lowest prices at the pump in and around Tucson.
For perspective, it was ten years ago in July when we were paying $4.11 per gallon.