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National gas prices hit $3/gallon average for first time since 2014

One economic forecaster discussed the recent cyber attack to a gas pipeline, along with the...
One economic forecaster discussed the recent cyber attack to a gas pipeline, along with the current gas price situation in Arkansas, and what we should be mindful of over the next week.(KARK)
Published: May. 12, 2021 at 12:04 PM CDT
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BIRMINGHAM, Ala. (WBRC) - The national average price for gas hit $3 a gallon Wednesday, that’s the highest national average since October 30, 2014.

Is the Colonial Pipeline cyberattack to blame? GasBuddy analysts said one major factor for the jump is COVID-19 related recovery is pushing things back to normal and leading to rising gasoline demand.

“While this is not a milestone anyone wants to celebrate, it’s a sign that things are slowly returning to normal,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “In this case, rising gas prices are a sign Americans are getting back out into the world — attending baseball games, going to concerts, taking a road trip — basically staying anywhere but at home. This summer may see some blockbuster demand for fuel as well, as Americans find it very challenging to travel internationally, leading many to stay in the confines of U.S. borders, boosting some weeks to potentially record gasoline demand.”

GasBuddy said, “Rest assured that summer gas prices will not be setting records. They will settle down to levels more similar to 2018: the national average briefly rising above $3/gallon but eventually falling back under and remaining in the upper $2 to low $3 per gallon range. Should any major refinery issues develop in the midst of the summer travel season, gas prices could become impacted in a large way, especially if the economy continues to see solid recovery and demand for fuels increases.”

Click here to check gas prices in your area. The information is supplied by GasBuddy.com.

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