New York (CNN) — the rise of gasoline prices going from bad to worse in America.
The national average rose to $4.87 a gallon on Monday, according to AAA. This represents an increase of US$0.25 in the last week and US$0.59 in the last month.
There are currently 10 states where the average gas price is $5 a gallon or more, the last being Michigan and Indiana. Prices in the city of Washington are also over US$5.
New Jersey, Pennsylvania, and Massachusetts are just pennies away. Georgia is the only state with an average of less than $4.30 a gallon.
Unfortunately, prices might continue to rise. Veteran oil analyst Andy Lipow told CNN that he expects the national average to hit $5.05 a gallon in the next 10 days.
Oil, the largest component of gasoline prices, continues to rise even following OPEC+ announced plans to increase production late last week.
Gasoline prices have hit record highs for a number of factors, including strong energy demand, as people drive and fly more.
Supply, on the other hand, has failed to keep pace. The United States is pumping less oil than before the covid-19 pandemic began, and the market is signaling that the OPEC+ increase is late and insufficient. On Monday morning, US crude hit a fresh three-month high of $120.99 a barrel before pulling back.
Manuel Santana, a Bronx resident who works as a paramedic, said a few months ago it cost him $40 to fill his tank to get to work. Now, he costs you regarding US$60.
“It’s frustrating,” Santana said as he stood at a Manhattan gas station where a gallon of regular gas now costs $6. “Honestly, there’s not much you can do regarding it.”
Abdallah Alweimine, an Uber driver, said his gas bills have jumped from $150 a week to $250. And he worries they will go even higher.
Mark Zandi, chief economist at Moody’s Analytics, told CNN in a telephone interview that he feels more optimistic regarding the US economy’s ability to control inflation without triggering a recession.
Zandi said the only but would be a further rebound in oil prices.
“If the price of oil reaches $150, we will enter a recession. There is no escape,” Zandi said.
