Gas prices could reach $5 this week, expert says
Gas prices surged 25 cents since Memorial Day weekend
Gas prices are on the road to hitting $5 per gallon by this week, according to an industry expert.
The national average retail price for a gallon of regular gasoline jumped 25 cents since Memorial Day weekend hitting a record $4.86 Monday, according to AAA.
However, the national average is likely to hit $5 per gallon this week as oil prices continue to rise and gasoline inventories sit at their lowest level for this time of year since 2014, Andy Lipow, president of Lipow Oil Associates, told FOX Business on Monday.
GAS PRICES ON THE ROAD TO $5 NATIONWIDE VERY SOON
Prices are already 59 cents higher compared with a month ago, and $1.81 more than a year ago, according to AAA.
Lipow also cautioned that hurricane season has begun, and storms hitting the Gulf Coast could further hinder supplies in an already tight market.
"A major storm making landfall along the Gulf Coast, where 15% of the nation’s oil production and over 45% of the nation’s refinery capacity is located, can result in a significant supply disruption sending prices even higher," Lipow said.
HIGH GAS PRICES CAUSING 'DEMAND DESTRUCTION,' EXPERT SAYS
On top of that, Lipow noted that fuel demand will increase during the summer as consumers take their vacations. However, driving habits will change with consumers taking shorter trips and demand will be down compared with last year.
States that saw the biggest price increases over the past week, according to AAA:
- Michigan 45 cents
- Illinois 41 cents
- Indiana 41 cents
- Wisconsin 39 cents
- Ohio 38 cents
- Nebraska 37 cents
- Kentucky 36 cents
- Colorado 35 cents
- Minnesota 34 cents
- Texas 32 cents