The average national price of a US gallon of gasoline hit US$3.073 on Monday, up almost a penny from Sunday‘s also record-setting price. Gasoline is now well above the previous record of $3.057, set on Sept. 5, 2005, soon after hurricane Katrina hit the US coast.
Prices could increase further. America’s “summer driving season” begins in two weeks, on its Memorial Day. “Tightness in the U.S. gasoline situation will continue to drive the market … because the summer driving season is right around the corner” said one analyst Victor Shum, from Purvin & Gertz.
So if supply continues to be disrupted from Nigeria and certain Middle Eastern countries, and it’s a long hot summer prices could go up and up. American motorists famously demand cheap fuel .. but for how much longer will they be able to buy it?