Temperatures have soared to all-time highs throughout the nation, but that’s not the only recent development of note. According to data provided by AAA, the price of a gallon of regular gasoline reached a new all-time high of $3.76 on Monday after seeing a sluggish but steady ascent over the last several weeks.
The situation is a great deal more severe in the Western states. Most gas in the Golden State is around $5 a gallon. The state of Washington comes in at a close second with a price of $4.95.
The exceptionally high temperatures are expected to cause a significant increase in the price of gas this summer, according to industry analysts.
Several of your refineries are exhibiting symptoms of respiratory distress, such as coughing and wheezing, among other symptoms, Tom Kloza, the global head of energy research at OPIS, recently said. He said refineries are not geared to run 10 or 15 days in a row with temperatures of 100 degrees.
When refineries are not operating at their maximum capacity, there is a decrease in the amount of gasoline produced. When there is more demand than supply, prices will inevitably go up.
According to media reports, refineries on the West Coast have seen the most significant decline in output.
Patrick De Haan, the top petroleum expert for GasBuddy, has warned that things might get worse before they start to get better. He went on to say that it wouldn’t come as a surprise to him if the price of gasoline increased by an additional fifteen cents over the course of the following several weeks.
According to De Haan’s forecast, the temperature will drop when fall approaches. Russia and Saudi Arabia are the most critical unknown factors, particularly given the possibility that Saudi Arabia would maintain its oil output cutbacks until September.
The reduction in oil output in the Middle East has already started to drive up the price of crude oil, which drives up the cost of refined petroleum products such as gasoline.
If storms struck the Gulf Coast and interrupted operations at refineries there, then prices would increase substantially higher than they are now.
