Gas May Soon Reach $6 Per Hour

Every state in the U.S. is now paying over $4 a gallon. Signs displaying prices for regular, plus, and premium now brightly display numbers that the rest of the country until recently only equated to California. And the peak summer driving season is just getting started.

How high can gas prices go?

Pump prices generally rise starting right about now as we head towards Memorial Day and then peak shortly after the July 4th holiday. This year, however, all bets are off as new records are broken daily with no end in sight.

As for $5, GasBuddy says the national average has a roughly one-in-three chance of reaching that threshold. And that’s far from the worst predictions of what’s to come.

A recent JPMorgan forecast calls for the national retail price for a gallon of gas to reach $6.20 by summer’s end. Analysts warn that refiners typically ramp up production before the summer season, but inventories instead now sit at their lowest levels in three years.

Now the Los Angeles and San Francisco metro areas top the $6 mark.

Ready for even more disturbing news? Gasoline inventories on the East Coast are now at their lowest in 11 years. The most elementary understanding of supply-and-demand reveals where this is headed.

The Oil Price Information Service (OPIS) now predicts the average to blow past $5 by mid-summer. Markets are bidding upwards at breathtaking rates in anticipation of further shortages, and this results in record profits for refiners.

This comes as some states have dropped their gasoline taxes in an attempt to lessen the damage from soaring pump prices.

Analysts estimate that the average U.S. household now spends the equivalent of $5,000 per year on gasoline. Just 12 months ago that figure was $2,800. Top that with double-digit inflation in grocery stores, and it is clear that to make ends meet, Americans have to pull back from something.

The White House certainly doesn’t have a clue, not for inflation that is ripping money daily from the wallets of hard-working families. It is taking food off tens of millions of tables, and there’s no plan. On the bright side, at least we are enforcing proper pronouns.