Spring is in the air, which means the U.S. is in store for warmer temperatures and higher gas prices, according to the latest report from AAA.
The national average cost for a gallon of gas increased by five cents from last week to $3.48, reflecting strong demand for gas and rising oil prices, AAA said. As temperatures heat up, so will demand, which will likely keep pressuring gas prices.
“Oil prices finally crested and have now settled above the $70 per barrel mark after weeks of hovering just below it and gas demand is very robust,” AAA spokesperson Andrew Gross said in a statement. “These two factors will cause drivers to see prices increase for now.”
Shopping for cheaper auto insurance is one way drivers can lower the cost of owning a car. You could consider changing your auto insurance provider if you want to save money on your auto costs. You can visit Credible to find your personalized premium without affecting your credit score.
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Refinery issues ‘moving into the rearview’
Gas prices have now rebounded by 13 cents since one month ago and are about 75 cents less than they were a year ago, according to AAA.
A combination of high demand and low supply will likely keep prices up, AAA said. Gas demand increased to 9.15 million barrels per day from 8.96 million barrels during the week ending March 24. Gas reserves dropped by 2.9 million barrels to 226.7 million barrels over the same time, according to Energy Information Agency data released Wednesday.
While the refinery issues that impacted output earlier this year are largely resolved in some parts of the U.S., gas prices could continue to be affected by more limited supply in other parts of the country, warned GasBuddy’s head of petroleum analysis, Patrick De Haan.
“While Colorado’s refinery issues are largely moving into the rearview mirror, challenges making the transition to summer gasoline in Arizona are leading to tight supply and accelerating prices,” De Haan said in a statement. “Motorists in some areas may be on the receiving end of good news, while others may not as we hit the second half of refinery maintenance season. You never know what the closing moments will look like, and motorists could be in for a dramatic ride if issues develop.”
If you are shopping around for new auto insurance, you can use the Credible marketplace to compare multiple providers and find your personalized rate in minutes.
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Bank collapses could make borrowing harder
Drivers looking to finance a new car purchase with a bank loan could find fewer choices available as bank failures are likely to tighten credit lending, according to the Federal Reserve. The Fed raised interest rates 25 basis points at its most recent meeting.
The ongoing interest rate increases could make it harder for consumers to borrow, especially for larger purchases.
On top of that, drivers today are paying more for new cars and used cars because of supply chain issues and inflation, according to the World Economic Forum.
If you are looking for ways to save money, you could consider finding a new auto insurance provider to lower your monthly premium. Contact Credible to compare multiple car insurance providers at once and choose the one with the best rate for you.
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