The price of gasoline seems to be on the rise again

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For some specialists, the average price of gasoline this summer could break the $4.33 dollars reached last March.

Photo: FREDERIC J. BROWN/Getty Images

The price of gasoline has stopped the fall that has been going on for several weeks since it reached record highs last March and for some analysts it will rise again.

The last downward figure was registered last week when it touched the minimum of $4.07 dollars per gallon, according to data from the AAA.

However, ever since the average price of gasoline returned to the upward trend and already adds five days with increases, although of a few cents.

These movements continued this Wednesday with the national average price of regular gasoline at $4.11 per gallon.

California remains at the top of the price list with an average of $5.69 per gallon made out of fuel.

Although the government of President Joe Biden is optimistic that the price of gasoline will continue to fall, for some analysts the scenario is not so encouraging.

It won’t go down anymoresaid Andy Lipow, president of consultancy Lipow Oil. “This is terrible news for inflation,” he added in an interview for CNN.

Gasoline was the factor that most fueled the inflationary rise last March and left the annual indicator at 8.5%, according to the most recent report from the Bureau of Labor Statistics.

The analyst sees two factors that will prevent gasoline from falling below the $4 dollar floor: the summer season and the lengthening of the military conflict in Ukraine.

This last factor, explains Lipow, puts global oil supply at risk again and has caused increases in gasoline futures, which inevitably move the retail and wholesale price.

However, the international market scenario is still very uncertainwith oil barrel prices rising and falling from one day to the next.

This uncertainty led the national average price of gasoline to a maximum of $4.33 dollars last March, a figure that was still far from the 2008 record of $5.30 national average per gallon.

“I wouldn’t bet that $4.33 will be the highest price in the next few months. We may go higher“, considered Tom Kloza, global head of Energy Analysis at the Oil Price Information Service.

The recent control of gasoline prices is associated with a drop in crude oil prices, China’s lockdowns due to new outbreaks of covid-19, fears of a possible recession and the unprecedented release of strategic oil reserves.

Under this scenario, the Energy Information Administration believes that the price of gasoline will continue to fall to a national average of $3.84 dollars per gallon, during the upcoming summer season.

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