Gas Prices Around the U.S. Are Expected to Keep Rising
Gas prices have risen around the country and reached all-time highs. With the holiday season behind us, will gas prices go back down soon?
Jan. 3 2022, Published 12:40 p.m. ET
Gas prices have dealt a huge blow to consumers around the U.S., especially in states where public transportation is scarce. Coastal states have experienced some of the highest average gas prices. The recent averages have shattered previous all-time records. The holiday season usually increases the demand for gas, which can contribute to increased pricing. Why are gas prices so high in California?
Electric cars have been a popular topic in the automotive industry. Some people have started to make the transition to those types of vehicles. With future guidelines put in place to help decrease the amount of gas-fueled vehicles around the country, switching to an electric vehicle might be an affordable alternative to having to pay high gas prices.
The average gas prices have increased in the U.S.
According to the AAA (American Automobile Association), the current national average for a gallon of regular gas is $3.288. Gas prices are the highest on the West and East coasts, while the prices in the Midwest are lower.
California has the highest gas prices in the country with the current price for regular gas at $4.660 per gallon. Diesel costs $4.795, mid-grade costs $4.844, and premium costs $4.973. Hawaii has the second-highest gas prices at $4.325, while western states like Washington, Nevada, and Oregon aren't much lower. For states on the East Coast, gas prices aren't much cheaper than the prices on the West Coast. Pennsylvania has the highest gas prices of all the Eastern states at $3.526.
Which states have the lowest gas prices in the U.S.?
Southern states have the lowest prices in the country. Oklahoma has the lowest price for regular gas at $2.870 per gallon. Texas has the second-lowest price at $2.907. Other Southern states like Arkansas, Mississippi, and Alabama have some of the lowest prices as well. Meanwhile, the price in Wisconsin is $2.989 per gallon.
Why are gas prices so high in California?
The gas prices in California have been higher than most other states for decades. The state usually has higher taxes, mortgage rates, and interest rates than many other states. According to The New York Times, California hit an all-time high for gas per gallon in November 2021 at $4.71 per gallon. Before the record-highs in 2021, the previous record was at $4.671 in 2012.
Historically, gas prices have been consistently high in California because of high tax rates. Lately, multiple other factors have played a part in high prices, especially natural disasters around the state including wildfires, heavy storms, and droughts.
There's also the issue of demand. Fuel usage increased during the early stages of the COVID-19 pandemic. Gas companies had a hard time meeting the demand. Rising demand and inflation have contributed to a rise in gas prices across all U.S. states. Since prices were already high in California, the increase has impacted those residents even more.
When can we expect gas prices to go down?
According to Fox 40, the national average gas price is expected to peak around the spring and summer seasons in 2022. Then in the fall, prices may start to go down and will reach the lowest prices for the year around the holiday season at the end of 2022.
