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The $3 Per Gallon Gasoline Is Becoming The New Normal

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If you’re planning to travel soon as your state allows you to, watch out for a new danger: the $3 per gallon gasoline. Fuel prices are on the rise, as oil prices broke through the $60 per barrel threshold amid renewed demand. In contrast, OPEC and Russia announced cuts in daily oil production while fracking production remains restrained. 

RELATED: Oil sinks to six-month low amid weak data, slump in gasoline

National Average Creeping to $3 Per Gallon 

According to the American Automobile Association (AAA), the US national average price for gasoline the past five days is currently at $2.87. It’s 23 cents higher a month ago and 75 cents higher a year ago. The last time US drivers experienced $3 per gallon gasoline was in 2014. However, prices flirted with near $3 levels in both 2018 and 2019. 

According to Mizuho’s Director of energy futures Robert Yawger, the $3 gas might become standard by Memorial Day. “We’ve been trapped inside for a year. People want to get out of the house,” he added. In fact, some states already deal with prices above $3. Pennsylvania, Illinois, Arizona, Utah, Nevada, and California are among the states that are paying more than average. 

Blame it On Biden

With President Joe Biden cracking down on fossil fuels last winter, critics are now pinning higher gas prices on this administration. In contrast, some industry experts insist that the issue with gas isn’t an effect of federal policy. “Make no mistake, prices would have gone up no matter who was in the White House. This is more about economic recovery,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

On his first day at work, Biden revoked the permit to build the Keystone XL pipeline, a network designed to bring oil from Alberta, Canada to Steele City, Nebraska. Also, he put on hold all oil and gas leasing in the Arctic and rejoined the Paris Accord on climate change. In addition, Biden deferred all new oil and gas leasing and drilling permits on federal lands He deferred all permit approvals for new permits on federal lands to the Department of Interior. Fortunately, the Interior announced they won’t renew the current 60-day suspension for new permits. “Some blame is being laid on Biden and the Keystone Pipeline but that has absolutely nothing to do with the price of crude or gasoline this year,” said Tom Kloza. He is the global head of energy analysis at the Oil Price Information Service. 

Increased Demand

De Haan remains surprised at how fast gasoline prices recovered from the pandemic. They’re now at levels comparable to prices before coronavirus brought the world to a standstill. Based on GasBuddy data on gasoline purchases, weekly US demand last week is only 1% higher than the week ending March 14, 2020. This is the week before the US announced the beginning of lockdowns. In addition, US driving directions, an indicator of renewed travel plans, rose steadily and are now above January 2020 levels. A similar query is undertaken in Germany, UK, and Italy showed driving interest remained lower.  “There is a little more cabin fever this spring,” De Haan said. “The overwhelming odds are that we will at some point see the national average touch the $3 mark.”

Coming Soon: $80 Per Barrel Crude

Oil prices are quickly going back to pre-COVID levels as well. US crude hit a pandemic high of $66.09 a barrel last March 5. Considering that April 2020 prices were at -$37 a barrel, this shows a remarkable turnaround in less than a year. Despite increasing demand, some oil-producing nations scaled back on their quotas. Russia and OPEC both shocked the market by extending their announced production cuts at least until April. As a result, oil prices surged earlier this March. However, the V-shaped nature of oil recovery reared its head. Concerns over European vaccination rates dampened demand and brought prices down to $61.42 last week. 

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Still, investment banks see the inevitable rise of oil. Goldman Sachs predicts that the oil rally will eventually top $80 per barrel for Brent crude by summer. By that time, vaccine rollouts are at their peak and recovery programs are underway. “We view the recent sell-off as a transient pullback in an otherwise large oil price rally and a buying opportunity,” Damien Courvalin, Goldman’s head of energy research, wrote last week.

Watch the CNBC News video reporting that gas prices are spiraling upwards as demand increases:

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Do you agree that gas prices will go up fast as demand increases in the US? Or, do you think oil production will increase as demand increases as well? Let us know what you think. Share your comments below.

26 Comments

26 Comments

  • John says:

    I agree that gas prices will go up fast as demand increases in the US? WE need to find a better source of fuel to use for our vehicles and homes.

  • Me says:

    What are y’all talking about does anyone remember after 9/11 wham gas was $4+

  • Jake says:

    Wake up America, we were energy independent before Marxist gain power . How does one tow 15,000 pounds for a living with electric vehicle, with any range?

  • Shovelhead Mike says:

    Damn DemonRats

  • Brenda West says:

    Yes, I agree gas prices will continue to rise, especially with dems in control !

  • ROBBY says:

    YOU ARE SO STUPID!! CHILD MOLESTER JOE BIDEN IS THE REASON THE PRICE OF GAS IS SO DAMN HIGH!! REMEMBER THE KEYSTONE PIPELINE?? REMEMBER WHEN CHINA JOE BIDEN STOPPED IT?? THAT’S WHY GAS PRICES ARE SO HIGH!! BLAME THE CRIMINAL DEMOCRATS!!

  • Josh says:

    I have talked to owners with electric vehicles, they tell me that they can go about 100 miles before they need to be charged again which could take 2 hours or longer. So here we are working from paycheck to paycheck trying to make sure we can pay $3+ a gallon. I live in Arizona and I have paid as high as $3.25 per gallon, there is no way I could afford an electric vehicle and still meet my household bills. Even if we as Americans that live from paycheck to paycheck had electric vehicles that would solve the $3+ a gallon but than we would be complaining about our electricity bills going through the roof , so it’s a win win for our government and big corporations while we get pissed on

  • Tim Carruthers says:

    This illegitimate presidency has done nothing but destroy our lives. Fuel prices climbing wide open border and thought$2000 stimulus. Not looking pretty America. Impeach Biden for China Russia and Ukraine scandals and Harris for bailing out rioters and looters that burned down cities.

  • Bob says:

    Joe Biden stops the Keystone pipeline the 1st day in office and we can’t figure out why gas prices are going up?!! Dems are anti-Americans who only want power. And they don’t give a damn who they hurt by getting it. Look at those little kids locked up on the southern border as proof. We damn sure need Donald Trump or someone exactly like him back in the White House again!!!

  • Robert Barnes says:

    Electric cars are just a “make me feel good” scam. No one takes the time or has the mentality to think about all the coal that has to be burned in coal-fired electric plants to produce all the extra electricity to charge all these pathetic vehicles. And another thing, don’t these idiots realize that we all live on the same dirt clod together and while China and the rest of the world belch out pollution like there is no tomorrow, we think we can save the planet all on our own. Have they never heard of the jet stream? What they produce today we breathe tomorrow. The world is laughing at us.

  • Mark Hiatt says:

    The Democrats just want the American people to suffer. The United states has energy independence. The United states are not the polluters of world, China is. They just happen to be the Democrats buddies. We have to get the country back from them, vote them out!

  • Dawn A Paull says:

    It is only going to get worse from here on out with the leaders in office right now…. America is crumbling every day and it is heartbreaking for our future generations

  • Jerry Valenzuela says:

    It really doesn’t matter what anybody thinks about gas prices the democrats are going to do what and how they control the oil industry. They want electric vehicles on the road to meet there agenda. You know each and every Democrat have some kind of stake in it to make them richer.

  • Donaldo says:

    I have family and friends that voted for this bumbling idiot in the White House and still can’t figure out what is happening in this country. Some let blind hate for Trumps personality cloud their judgment. Others were indoctrinated by communist professors in college and then some vote democrat because their ancestors always voted democrat. Yesterday’s democrat party no longer exists, it has become today’s communist party. Wake up America before we become another Venezuela. For you uninformed 20 years ago Venezuela had the third strongest economy in the world. Today under socialism they’re in the toilet.

  • Donaldo says:

    I have family and friends that voted for this bumbling idiot in the White House and still can’t figure out what is happening in this country. Some let blind hate for Trumps personality cloud their judgment. Others were indoctrinated by communist professors in college and then some vote democrat because their ancestors always voted democrat. Yesterday’s democrat party no longer exists, it has become today’s communist party. Wake up America.

  • Dean Fredrick Pine says:

    If The Democrats ran a fair election the price of gas would still be under 2.00 dollars. Biden Has Done everything to hurt this country, Closing pipeline, so they can train in oil makes no sense unless your your the one making the money to rail it in by train. I am sick of the Left Lying, Cheating, Stealing, to get there way, Trying to take away our constitution and freedom every chance they get. Most of them should be in Jail anyways for Treason, child traffic, Pedifile’s and just plain selling our country out. While they can Break all kinds of Laws, take Pay offs, Brives, and what ever they want. Burn In Hell.

  • Frank London says:

    Angry Americans like some of those commenting above MUST get educated! You all know who I mean

  • Jeff Wooldridge says:

    WE are in for a real rough go as long as the socialist party is in control. We need to remove as many as possible out of house and senate in 2 years….God let us make it until then!!!!!!

  • Al Cloud says:

    Gasoline is too high already. Texas needs to secede from the union Texas is the richest State
    Texas has plenty of resources, Oil, natural gas and every thing we need to be independent.

  • Karen Payne says:

    Yelp, prices will go UP! You can put the blame on Ole Uncle Joe ( ur President that you put in office ),not gas but everything & more bad things are going to happen. I need not tell you but I Will Say OPEN YOUR EYES & OPEN YOUR EARS & LISTEN & SEE. Clean out your ears and get the fog cleared from your eyes!!!!!!!!!!

  • Joe F says:

    Gas prices soaring border being overrun and no control amazing how 1 party can do so much damage! Thank you Biden supporters

  • Jay says:

    Thank’s to the one’s voted for them there the blame for all this the ones didn’t know better cause he told up front what was going happen.

  • Ty says:

    As we lose our independence and have to import resources from afar prices will continue to rise as their greed.
    Just wait until they monitor and charge you per mile traveled too!

  • Anonymous says:

    The Democrats have made it very plain they would slow / stop petroleum production so they can buy. Foreign oil and enjoy kickbacks while we pay these high fuel prices. When was the last time you saw a president at a gas pump .😎😎😎

  • Ron D says:

    We just got back from a Spring Vacation with my daughter in San Diego where the pump prices were over $4.00. President Biden wants oil prices to go sky high so the Green Deal doesn’t look so outrageously expensive. Terminating the pipeline, removing permits to frack and drill oil, and added gasoline taxes is just the start. We have to endure four years of energy dependency before this madness ends.

  • don Larson says:

    How little they know! How little they care to even do the Research. The World has been swimming in oil & gas. Lot’s of rigs removed & wells capped. Big Oil has been taking it on the Chin for the past two years. We can’t have that! Entire supply & demand process rigged. Meanwhile EV’s and Back Yard Energy Technology exploding. Tesla sales were 181,000 in February – – twice the number from a year ago; and, the rest of the Auto Industry slowly catching up! By 2034; the gasoline combustion engine will be all but discontinued; as, the Entire Auto Industry has pledged to go Electric – – by then. Self-driving Trucks and Autos will be common place by then; as the World has entered the Age of Smart Machines & Robots. Most of the Blokes commenting here will be out of a job; & the price of gasoline will be the least of their worries. Yes – – Friends – – the Robots are Coming; & they are smarter and much more capable that most all of us. It’s one of the Reasons why the concept of a Universal Income is being piloted in Europe; & discussed widely here. Smart Machines will likely be Taxed to pay for the Program. Only makes sense. That money will all be spent to support the Economy.

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