US petrol prices expected be at its highest since 2014

According to the American Automobile Association (AAA), the start of 2018 saw the most expensive national gasoline (petrol to us) price average at US$2.49 per gallon (RM2.65 per litre). The association said high travel volumes over the holidays were a key factor for driving up the price of petrol, which was the highest it has been since 2014. Back then, the average price of petrol for the year was US$3.37 per gallon (RM3.59 per litre).

“Although prices at the pump shot up over the holidays, now that the holiday season in the rearview mirror, motorists can expect gas prices to trend cheaper this month as we are likely to see a significant drop in gasoline demand,” said AAA spokesperson Jeanette Casselano.

Even so, GasBuddy estimates the yearly national average price of gasoline will rise 19 cents (RM0.76) this year to US$2.57 per gallon (RM2.73 per litre). In its 2018 Fuel Price Outlook, the company suggests prices could peak at under US$3 per gallon (RM3.19 per litres) for most states, with the exception of a few others. These include metropolitan areas such as Chicago, Los Angeles, New York City, Sacramento, San Francisco, Seattle and Washington D.C.

“Many will be quick to ask why we’re expecting higher prices. Ultimately, OPEC bears much of the responsibility for cutting oil production, leading oil inventories to begin 2018 nearly 50 million barrels lower than a year ago. Yet, understanding many factors, including OPEC, fuel taxes, the economy and their impact on supply and demand is integral to providing a thorough and balanced outlook on gas prices for 2018,” said Patrick DeHaan, head of petroleum analysis at GasBuddy.

“While gasoline prices overall remain affordable, one aspect that continues to worsen is the gap between what stations are charging. It’s become nothing short of crazy how one station might sell gasoline 20-40 cents (RM0.80-RM1.61) lower or higher than a nearby competitor,” he added.

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