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U.S. Gas Prices Highest In 7 Years Under Biden

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American motorists can expect to pay more to fill up their tanks at least through the end of August, according to AAA. The average price of gas nationwide has climbed to $3.13, a high for the year and up 40% since January 1.

And fuel costs aren’t expected to drop anytime soon. “We believe it’ll rise another 10 to 20 cents at the pump between now and the end of August,” Jeanette McGee, a spokesperson for AAA, told CBS MoneyWatch.

The main factors behind the steep climb in gas prices: rising global oil prices, businesses reopening as COVID-19 eases across most of the U. S. and pent-up demand for travel, she added.

As Americans hit the road for the July 4 holiday, demand for gas around the U. S. hit a new peak since the coronavirus erupted in 2020, according to data by travel and navigation app GasBuddy. Nearly 44 million Americans were expected to travel by car during Independence Day weekend, AAA estimated.

Tuesday’s national average gas price of $3.13 remains below the $3.70 reached in 2014, and Americans can expect prices to level off and decline in September, McGee said. The highest ever price for a gallon of regular gas was $4.11 in July of 2008, according to AAA.

Around the country, Idaho has seen the biggest spike in fuel prices over the last week, with gas costs jumping 10 cents, according to AAA. Other states seeing sharp increases of late: Alaska (up 9 cents); Colorado, Oregon and Washington (7 cents); Ohio, Utah and Wyoming (6 cents); and Montana and Nevada (5 cents). Mississippi has the cheapest gas, at $2.75 a gallon.

Americans may opt to eat out less or pick closer destinations because of higher prices at the pump, but the motor club estimates gas would have to climb to a national average of $3.50 or higher to stop people from traveling.

“People say at $3.25 they’ll start making changes,” according to McGee. “Keep in mind, Cali… (Read more)

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