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California is seeing particularly high prices compared to the rest of the U.S., according to the September Wright Express fuel report. Experts predict that the national average will hit $3.50 by the end of the year.
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While gas prices continued to climb through August and are expected to continue to increase in the near term, Wright Express said that prices are expected to drop again by the Thanksgiving holiday.
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States in the Midwest, including Indiana, Michigan, Ohio and Illinois, have seen prices increase nearly 60 cents per gallon during the past 30 days.
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Experts predict that some of the lower priced areas could see prices head north again, but not by any large amount. Some of the higher priced areas like the West Coast still have room to go down, and prices should continue to fall, albeit at a fairly slow rate before flat lining in the coming weeks.
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Despite this drop in the national average, refinery issues have continued to cause West Coast prices to remain at levels well above $4 per gallon. Experts say, however, that the issues have been resolved and prices should drop.
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For example, the average price on the coast, including California, was $4.24 per gallon, according to the U.S. Energy Information Administration (EIA). However, the average retail gasoline price, minus California, was at $4.08 per gallon as of May 21.
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Most experts predict that prices could get as low as $3.50 per gallon as it is typical for prices to fade by about 10% after the spring peak.
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Analysts see prices increasing in the next few weeks, possibly breaking the record set in July 2008 by the end of April, but don’t believe the rally will continue unless geopolitical events in oil-producing countries, or other events, cause a supply disruption of some kind.
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According to the latest report from Wright Express, gas prices could break 2008 records this summer.
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