If you thought gas was high now, just wait till you go refuel in August. A recent JPMorgan research note says the average national retail price for a gallon of regular gasoline is projected to surpass $6 by this summer.
Just two days ago, the national average broke another record, reaching $4.56 per gallon, according to AAA, which is already up close to 50 cents from a month ago, and $1.52 from this time last year.
JPMorgan says prices could go up another 37% by August, which hits the price tag of $6.20 per gallon national average.
The projection is due to “expectations of strong driving demand” over the summer driving season, and includes holidays like Memorial Day and Labor Day, the analysts added.
“Typically, refiners produce more gasoline ahead of the summer road-trip season, building up inventories,” the analysts continued. However, since mid last year, “gasoline inventories have fallen counter seasonally and today sit at the lowest seasonal levels since 2019,” the analysts continued.
The analysts warned that “gasoline balances on the East Coast have been even tighter, drawing to their lowest levels since 2011.”
Los Angeles became the second metro, alongside San Francisco, with the average cost for a gallon of gasoline surpassing $6, Fox Business reported.
However, for the first time ever, the average cost for a gallon of gas went above $4 in all 50 states.
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