Gas prices are up 49% since the start of this year, mainly due to production issues at home and supply issues overseas like the sanctions on Russian crude oil following that country’s February invasion of Ukraine. Prices are up about 177% since the pandemic low of $1.77 per gallon in April 2020. To help ease the price you’re paying at the pump, President Joe Biden urged Congress last week to temporarily halt collection of the 18.4 cents per gallon federal gas tax and asked states to make similar cuts as well. Gas prices could be as low as $4.75 by July 4, according to a tweet from Patrick De Haan, head of petroleum analysis for gas price tracker GasBuddy. But how long they will stay there remains unclear. Tom Kloza, global head of energy analysis for energy pricing company Oil Price Information Service, recently tweeted that this dip in prices reflects the last bit of relief at the pump before July when summer driving demand is expected to peak. Meanwhile, JP Morgan forecast earlier this year that average gas prices could hit $6.20 by August. Have a question, comment, or story to share? You can reach Terry at tlane@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
