Published: Sat, January 13, 2018
Markets | By Rosalie Gross

Gas prices could soon reach $3 a gallon

Gas prices could soon reach $3 a gallon

Prices on Cape Ann for regular gasoline ranged from a low of $2.55 per gallon at several Gloucester stations to a high of $2.89 in Essex, according to Gasbuddy.com.

By region, the West Coast market is the most expensive in the country, with California taking top honors in the Lower 48 with $3.16 per gallon, though that price is inflated by a new tax that went into effect past year. The average price would be the highest since 2014's $3.34.

The month of January will see the lowest prices at an average $1.13 per litre, while September will average $1.24 per litre, making it the priciest month of the year.

New Haven- $2.61/g, up 1.2 cents per gallon from last week's $2.60/g.

Austin- $2.22/g, up 0.8 cents per gallon from last week's $2.21/g.

After weeks of seeing rising gas prices, the price at the pump fell in metro Detroit this week, according to GasBuddy. "Prices at the pump are higher than they were almost all of last summer".

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However, because of the build of inventories of refined products within the last week DeHaan believes that there's a high possibility that the national gas average will fall toward the end of January. California drivers paid $2.55 for regular unleaded gas to begin 2015, but by May were paying above $3.70 per gallon.

Prices jumped 9 cents in Illinois, Delaware, and Michigan, AAA said.

"The transition from "winter blend" to "summer blend" gasoline which takes place as refiners perform seasonal maintenance results in a reduction in the amount of gasoline produced and can increase gas prices dramatically", says the report.

The national average is expected to rise almost 20 cents compared to previous year to $2.57 per gallon, according to the 2018 Fuel Price Outlook released Wednesday by GasBuddy.

DeHaan noted that several factors including the strength of the economy, fuel taxes, weather and global conflicts all play roles in setting the final gas price consumers see at the pump.

According to the Energy Information Administration in last week's report, oil inventories tumbled by 7.4 million barrels, leaving them almost 55 million barrels under a year ago.

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