Gas prices won't be declining anytime soon.
With the Fourth of July holiday weekend fast approaching, most Americans who have plans to travel are hoping that gas prices will be favorable for long drives.
Unfortunately, it doesn't look like that'll be happening. Although nationwide gas prices are already elevated, they're still expected to rise even more by the weekend.
According to Yahoo! News, gas prices are projected to reach a six-year high, surpassing the staggering prices of 2008.
Gas analysts have stated that the price of regular-grade gasoline is expected to reach a national average of approximately $3.68 a gallon. That projected average is a whopping $0.17 cents higher than the prices were leading up to Independence Day weekend last year.
GasBuddy.com chief oil analyst Tom Kloza recently spoke with CNBC where he shared a number of interesting facts that support his rising gas price prediction. “We’re going to see the highest July 4th prices since 2008, and we probably wouldn’t have if it weren’t for Iraq,” Kloza said.
“I certainly would not rule out, if something happens near Basra or south of Baghdad, that we would see national prices make a pass at $4,” Kloza said.
He went on to explain another big factor that could contribute to the notable change in gas prices - hurricanes. If there isn't a cut in Iraq production, the biggest price threat could come from potential hurricanes later this summer.
"If the troubled region’s production isn’t disrupted, potential hurricanes would be the next significant threat to gas prices. Without hurricanes, the last 100 days of the year, we’ll start talking about how cheap gasoline is,” Kloza explained.
Kloza also touched on the subject of taxes. As of July 1, some states will be implementing taxes on the sale of gas, which could also contribute to the spike in prices.
Image via Gas Prices, Wikimedia Commons