Springtime has brought steadily increasing gasoline prices but while the increase is just another example of continued inflation, prices have just returned to year-ago levels
AAA reports the national average price of regular gas is $3.66 a gallon, five cents higher than a week ago but up 20 cents in the last month. However, the price today is the same as it was one year ago.
A lot of factors have driven the most recent increase. Oil prices have been steadily rising over the late winter and early spring.
Prices normally rise at this time as refineries begin routine maintenance and switch over to producing summer blends of fuel, which cost more. Earlier this month, demand for gasoline rose while supplies went down, adding to the pressure on prices.
Hurricanes could be a factor
But there is another threat on the horizon that could be a an unpredictable facor for prices at the pump. Hurricane season begins June 1 and researchers at North Carolina State University are predicting that the 2024 hurricane season will be an active one, with the number of named storms predicted to be “significantly higher than the long-term average” in the Atlantic.
But the Gulf of Mexico could be an even bigger problem as forecasters expect as many as seven named storms in that body of water. The nation’s oil refineries are clustered along the coasts of Louisiana and Texas.
“That's one major wildcard for August and September,” GasBuddy’s Patrick DeHaan told ConsumerAffairs. “I believe CSU suggested a 40% chance of a hurricane impacting the Gulf so yes, that's a big if.”
Looking back in history, the Gulf of Mexico averages two to three named storms per year, so the current forecast doubles those odds.