MINNEAPOLIS (WCCO) — If you’re planning any road trips this summer, get ready to pay up at the pump.
Experts are predicting that gas prices could reach over the $3 a gallon mark by the Fourth of July. Prices are already the highest they’ve been in four years.
The gas at Jim’s Chicago Service in Minneapolis was $2.73 a gallon Saturday, the average for Minnesota. According to GasBuddy, that’s up nearly 50 cents higher from the average one year ago.
“It gets frustrating because you gotta come out of your pocket more but you’re gonna have to get around so you’re gonna have to pay for the gas,” Trayjorn Martin said.
The hike comes after President Donald Trump announced the U.S. will withdraw from the Iran Nuclear Deal and reinforce economic sanctions. And Venezuela, which holds most of the world’s oil reserves, is in turmoil with a dwindling supply. Less supply and more demand means you pay.
“I go to Costco regularly or I try to go outside the metro area to try to get a cheaper price. I use an app on my phone to try to get the cheapest gas price. Also rewards programs, but sometimes it doesn’t always work out due to convenience,” Harrison Ngeyen said.
Prices at the pumps in Minnesota are still slightly below the national average of $2.84 a gallon. In California, prices are inching towards $4 a gallon.
“If we get to California prices then yeah, that’s probably gotta be the point where maybe I should just bike to work, it would be better. Or using Metro Transit,” Ngeyen said.
The summer travel season kicks off on Memroial Day weekend and according to Trip Advisor, 74 percent of Americans plan to drive for their Memorial Day travel plans, meaning even a road trip to the cabin will be more costly this year.
It’s hard to know how much sanctions on Iran will impact your gas bill. And if other producers like the U.S. can pick up the slack. Analysts say any problems with domestic refineries or even summer hurricanes could send gas prices even higher.