According to the American Automobile Association, the Gas Prices is expected to increase by between 10 and 20 cents nationwide by August. The trade group said Tuesday that the national average price of gas increased from $2.25 to $3.13 between Jan. 1 and July 6, a 40% spike. It projected a further increase of between 10 and 20 cents by the end of the summer, which would amount to a national average of $3.25 per gallon.
Jeanette McGee, a AAA spokesperson said that robust gasoline demand and more expensive crude oil prices are pushing Gas Prices higher. They 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.
The group added that crude oil prices are likely to surpass $76.40 as soon as the end of Tuesday for the first time since November 2014, which will likely lead to further gas price increases over the weeks ahead. The announcement came a day after the Organization of the Petroleum Exporting Countries called off a Monday meeting with allies, including Russia.
At the White House press briefing Tuesday, press secretary Jen Psaki pushed back on Republican attacks claiming the Biden administration was responsible for increases, noting that a confluence of factors outside of any individual president’s control led to increases or decreases in Gas Prices. Jen said that there is a misunderstanding of what causes the surge in gas and so. In order to convey to the American people, that working on it and certainly the supply availability of oil has a huge impact. They ensure that Americans don’t bear a burden at the pump and continue to be a top priority for the administration at large.