Gasoline prices are rising across the United States, and even the West Coast is getting in the action this week as prices slowly start to creep up. The bad news? That prices may have bottomed out until the end of summer. The good news? That nationally, prices remain about 25c/gal cheaper than last year.
Even with the tepid rise we've seen in the last couple weeks, prices in a majority of areas are still lower or at least comparable to last year. It wasn't surprising to see the best gasoline prices for the summer in June, which is what I was forecasting back in January. The next expected drop in gasoline prices will be in October through Christmas or so, with the national average dropping into the low $3/gal range, unless the economy suddenly perks up, which seems unlikely.
Prices in Canada have surged in the last week, rising 2.5c/L, or about 10 cents per gallon. While gasoline prices in the U.S. remain well under their month ago level, Canada's average prices now stand higher than a month ago, and looking at more data, prices stand just under their year ago level in Canada.
This week will likely mean continued rising prices in both the U.S. and Canada, with notable jumps in California, Oregon, and Washington, not much expected change among areas of the Rockies, and continued rising prices in Florida and the rest of the Southeastern United States.