According to the American Automobile Association (AAA), the national average price of gasoline has risen 40 percent since the beginning of the year, from $2.25 on Jan. 1 to $3.13 as of Tuesday, July. 6. AAA Iowa reports a lower average for the past week, showing a one cent increase to $2.97 with retail diesel prices holding steady at $3.10 per gallon and wholesale ethanol falling $.10 to $2.38. The prediction, however, is that consumers can expect to see even more price increases at the pumps over the summer, estimated at another $.10 to $.20, bringing the national average to well over $3.25 by the end of August. “Robust gasoline demand and more expensive crude oil prices are pushing gas prices higher,” says AAA spokesperson, Jeanette McGee. “We had hoped that global crude production increases would bring some relief at the pump this month, but weekend OPEC negotiations fell through with no agreement reached. As a result, crude prices are set to surge to a seven-year high.” A crude oil price of $76.40 has not been reached since November of 2014. A national average gas price of $3.25 has not been seen since October of the same year. The Energy Information Administration is also reporting that demand for gasoline is robust at 9.1 million barrels per day.
