Another U.S. gasoline price surge could be coming, GasBuddy warned in a blog posted on its website on Monday.

“Average gasoline prices declined in just six states over the last week, led by the Great Lakes region, where motorists in states like Michigan and Ohio saw prices fall sharply, while Indiana experienced even steeper relief after the state temporarily waived both its excise and use taxes on gasoline,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in the blog.

“Those declines helped pull the national average lower by roughly eight cents over the last several days after oil prices eased mid-week on optimism that the U.S. and Iran could reach a deal,” he added.

“However, that optimism has since largely unraveled, with talks appearing to stall and President Trump signaling the latest proposal is unacceptable, helping push oil prices higher again in Sunday electronic trade,” he continued.

“As a result, many states could see another round of price cycling in the days ahead, potentially sending the national average toward the $4.65 per gallon mark if oil continues climbing,” De Haan warned.

The head of petroleum analysis at GasBuddy went on to warn in the blog that, “should geopolitical tensions escalate further, fuel prices could rise even more sharply in the weeks ahead”.

The most common U.S. gas price encountered by motorists was $3.99 per gallon, unchanged from a week ago, according to the blog. This was followed by $4.19 per gallon, $4.29 per gallon, $4.49 per gallon, and $4.09 per gallon, the blog revealed.

The median U.S. gas price is $4.34 per gallon, up five cents from last week and about 14 cents lower than the national average, the blog highlighted, noting that the top 10 percent of stations in the country average $5.82 per gallon, while the bottom 10 percent average $3.83 per gallon.

The states with the lowest average prices comprise Oklahoma, at $3.93 per gallon, Mississippi, at $3.96 per gallon, and Arkansas, at $3.97 per gallon, according to the blog, which pointed out that the states with the highest average prices comprise California, at $6.10 per gallon, Washington, at $5.72 per gallon, and Hawaii, at $5.60 per gallon.

According to the AAA Fuel Prices website, the average gasoline price in the U.S. stood at $4.504 per gallon on May 12. Yesterday’s average was $4.520 per gallon, the week ago average was $4.483 per gallon, the month ago average was $4.125 per gallon, and the year ago average was $3.137 per gallon, the site showed.

The U.S. Energy Information Administration’s (EIA) latest fuel update at the time of writing, which was released on May 5, showed that the average price of U.S. gasoline was $4.044 per gallon on April 20, $4.123 per gallon on April 27, and $4.452 per gallon on May 4.

The May 4 price marked a $0.809 increase from the price two years ago, a $1.305 increase from the year ago price, and a $0.329 increase from the week ago price, the update pointed out.

In a blog posted on its website on May 4, GasBuddy highlighted that U.S. gasoline prices had jumped across all 50 states.

“Gasoline prices rose in every state over the last week, with some of the most significant and fastest increases concentrated in the Great Lakes, where states like Michigan, Indiana, Ohio, and Illinois saw sharp spikes, while Wisconsin experienced more modest gains,” De Haan stated in that blog.

In a maternal healthcare event hosted in the White House Oval Office on Monday, which was streamed live on the White House YouTube page, U.S. President Donald Trump said, “as soon as this is over with Iran … you’re going to see gasoline and oil drop like a rock”. 

When Trump was asked by a reporter at the event if he was going to suspend the federal gas tax, Trump said, “yea, I’m going to reduce”. When asked how long he was going to suspend that tax for, Trump said, “until it’s appropriate”.

“It’s a small percentage, but … it’s still money,” he added.

According to the EIA’s latest fuel update at the time of writing, which pegged the retail price of regular gasoline in the U.S. at $2.81 per gallon in January, 18 percent of that total went towards taxes. The largest amount, 51 percent, went towards crude oil costs, 20 percent went towards refining costs, and 11 percent went towards distribution and marketing costs, the update showed.

What do you think? We’d love to hear from you, join the conversation on the

Rigzone Energy Network.

The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.

This article was automatically fetched from an external source.