Come August, drivers across the nation could spend more than $6 per gallon of gas to fill up their vehicles.
Due to unresolved problems with the fuel supply chain and an expected increase in summer traveling, JPMorgan Chase analysts predict another surge in gas prices this summer.
“There is a real risk the price could reach $6+ a gallon by August,” said Natasha Kaneva, head of global oil and commodities research at JPMorgan Chase. “U.S. retail price could surge another 37% by August.”
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With each additional $1 increase in gas prices, JPMorgan Chase estimates that Americans’ consumer habits will drop by 60 cents.
“The hit from higher gas prices is twofold for high-gas-consuming states. Not only do higher prices reduce real income by more than elsewhere, such states appear to be less able to offset higher prices by reducing real demand,” said Peter McCrory, U.S. economist at J.P. Morgan Research.
As of Thursday morning, the average price of a gallon of regular gas had reached $4.59, while a gallon of premium gas had reached $5.20 — more than a $1.50 increase from last year at this time.
President Biden promised to take down American energy during his campaign.— Senator Ted Cruz (@SenTedCruz) May 18, 2022
Record gas prices are the intended effects of his deliberate actions. pic.twitter.com/MzGEerGpbv
Sen. Ted Cruz (R-TX) blasted President Joe Biden, saying he cut off resources and implemented policies that have created high gas prices.
“Record gas prices are the intended effects of [Biden’s] deliberate actions,” Cruz tweeted.
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On Wednesday, drivers nationwide saw the highest gas prices the country has ever recorded, surpassing $4 per gallon in all 50 states and Washington, D.C., for the first time.