Three dollar a gallon gas in Delaware may no longer a remote possibility.
The price at the pump in Pennsylvania, New Jersey, and Delaware, is at least 45 cents higher than during the same period a year ago.
Prior to the announcement of the U.S. withdrawing from the Iran Nuclear Deal, gas prices were expected to continue to rise ahead of Memorial Day, but reinstated sanctions on Iran could mean gas prices will continue climbing deep into the summer driving season, Wilmington-based AAA Mid-Atlantic reported.
Today’s national gas price average is $2.87, a figure that was matched by many stations in Delaware, a state where the price at the pump is usually below the national number.
Prices in the First State were comparable to southern New Jersey and Maryland which have gas taxes that is more than a dime higher than the Delaware rate.
Pennsylvania, which has the nation’s highest gas tax is already above the $3 mark.
At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil ended trading at $70 per barrel, up 28 cents from the previous week. West Texas crude hit new multi-year highs this week, closing above the $70 threshold four days this week ($20 more than one year ago). The U.S. decision to withdraw from the Iran nuclear deal and reinstate sanctions against Iran could constrain global oil supplies, which could further drive up crude and gasoline prices.
“With Memorial Day weekend less than two weeks away, drivers will likely face pump prices at their highest level since 2014,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “As the summer driving season gets underway, AAA believes local prices will continue to increase, however it may be weeks before motorists see the full effects of the U.S. pulling out of the Iran Nuclear Agreement and reimposing sanctions.”
Reinstated sanctions on Iran could mean gas prices will continue climbing into the summer driving season. The Energy Information Administration (EIA) noted in its Short Term Energy Outlook that it expects gas prices to average $2.90 per gallon, up from the average of $2.41 last summer. For 2018, EIA expects U.S. regular gasoline retail prices to average $2.79 per gallon. Monthly average gasoline prices are forecast to reach a summer peak of $2.97 per gallon in June, before falling to $2.86 per gallon in September. To find out gas prices in your neighbor check on the following link (http://www.AAA.com/fuelfinder).
The tool from AAA listed gas prices as low as $2.76 a gallon in Elsmere and the Newark area. The area with the lowest overall prices appeared to be Lewes-Rehoboth, with many stations around $2.80 a gallon. The area has seen an influx of Wawa and Royal Farms stations.
