The biggest U.S. gasoline price surge in years is running out of steam just in time for the start of the summer driving season.
Heading into Memorial Day weekend, the national average for gas prices is coming off the year’s high and sitting just above $2.80 per gallon, CNBC’s Tom DiChristopher reports. The national average has climbed 67 cents a gallon from the start of the year through May 4, when pump prices peaked, according to price-tracking firm GasBuddy. That’s the second biggest jump on record for the start of a year.
Gas prices shot up in 2019 as oil prices rallied roughly 40% through last month, bolstered by tighter supply and better-than-expected demand. Oil accounts for 50% to 60% of gas prices. Drivers also found themselves paying more due to disruptions at the nation’s refineries.
Oil prices posted their worst week of the year, as the U.S.-China trade war adds to concerns about economic growth and demand for fuel. But with Middle East tensions still simmering and threatening to push up crude costs, the national average gasoline price is likely to stay near $2.80 per gallon, according to Andrew Lipow, president of Lipow Oil Associates.
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