Gas prices expected to be 31% higher this Memorial Day than in 2017
U.S. gas prices are expected to be 31% higher this Memorial Day weekend than they were at the same time last year, according to AAA. Fifteen states are already seeing prices at over $3 a gallon. AAA says the reason for the higher prices is in part due to the fact that people are simply driving more. The organization expects that 41.5 million Americans will travel this weekend, up almost 2 million from the same time period last year. Thanks to the rule of supply and demand, higher demand on the existing gasoline supply is leading to higher prices, CNN reports.
In addition to the fact that simply, more people are driving, the organization says that the price of crude oil is up 50% over last year. Those prices soared earlier the month when President Donald Trump announced he would be withdrawing the U.S. from the Iran nuclear deal. Iran is currently the fifth-biggest oil producer in the world.
The good news is this might be as bad as it gets. While gas prices are expected to reach a peak over the weekend, analysts predict they’ll drop afterward. They could also get some help from OPEC and Russia, who are set to meet on June 22.