The cost of gas usually rises in June with the onset of the summer driving season, but mounting chaos in Iraq over the past month has led to an all-out oil shock.
As of June 29th, the cost of crude oil per barrel was $105.74, which has dipped and seemingly leveled out over the past week. The alarming thing about all this is that the dip should continue, as it typically does come July, making this year’s Independence Day the most expensive for drivers since 2008.
Currently, the U.S. average is $3.683 for regular. In Illinois, it’s $3.846, with prices topping $4.59 in some parts of Chicago.
Take a look at this gas price heat map from GasBuddy.com of Illinois counties with the highest and lowest price per gallon for regular.
How does Illinois compare to its neighbors?
- Illinois – $3.846
- Kentucky – $3.760
- Indiana – $3.631
- Iowa – $3.608
- Missouri – $3.531
On the bright side, the current average is down from both a week and month ago:
- Week ago – $3.907
- Month ago – $3.930
- Year ago – $3.763
- 12 month low – $3.223 (Nov. 10, 2013)
- All time high – $4.346 (May 4, 2011)
Top five states with highest average price for regular:
- Hawaii – $4.34
- Alaska – $4.22
- California - $4.13
- Washington – $4.00
- Oregon – $3.98
Top five states with lowest average price for regular:
- South Carolina – $3.39
- Alabama – $3.42
- Mississippi – $3.45
- Tennessee – $3.46
- Arkansas – $3.48
Here are some interesting facts and predictions regarding the nation’s gas situation, according to AAA’s monthly report.
- U.S. drivers will pay the most expensive Independence Day gas prices since 2008, primarily because Iraqi violence has increased global petroleum costs. AAA predicts that 34.8 million Americans will travel 50 miles or more by car during the holiday weekend despite high gas prices.
- With Independence Day only a few days away, today’s national average price of gas is $3.68 per gallon. This average is considerably more expensive than recent years for the holiday. The national average on July 4 in previous years was: $3.48 (2013); $3.34 (2012); $3.57 (2011); $2.74 (2010); $2.62 (2009); and $4.10 (2008).
- AAA does not believe that high gas prices will have a significant impact on the number of people traveling, but it could result in some consumers cutting back on dining, shopping or other trip activities. AAA’s full Independence Day forecast can be found here.
- The monthly average price of gas in June was $3.67 per gallon, which was the most expensive for June since 2011, and it was the highest average for any month since March 2013. Last year gas prices averaged $3.60 per gallon in June.
- Gas prices often decline in June as refineries complete maintenance and increase gasoline production in anticipation of the summer driving season. During the previous three years, the national average price of gas declined in June by an average of 21 cents per gallon. A month ago, AAA predicted the national average could decline 10-15 cents per gallon in June, but this did not happen due to the unexpected events in Iraq.
- On June 10, insurgents known as the Islamic State of Iraq and the Levant (ISIL), captured Mosul, which is Iraq’s second largest city. Following this attack, there were concerns in the market that the rebels would take Baghdad or disrupt the southern oil producing regions of the country. These concerns helped drive up global oil prices, which made it more expensive to produce gasoline. Iraq is the second largest oil producer in OPEC, and any decline in exports could impact global oil supplies.
- Gas prices this July likely will remain expensive due to high crude oil costs and rising summertime demand. AAA expects the national average price of gas in July will range from $3.60-$3.70 per gallon, though prices could climb higher if there are new developments in Iraq or a major hurricane. Last year gas prices averaged $3.58 per gallon nationally in July.
- AAA expects the national average price of gas likely will remain relatively flat in the near future and could even decline a few cents as the situation stabilizes in Iraq. Price increases from recent ISIL attacks in Iraq already are reflected in current prices, and it would take major new developments, such as ISIL moving into southern oil producing regions, for prices to rise significantly higher in the days ahead.
- Gas prices have increased by an average of 16 cents per gallon in July during the previous three years as strong summer demand pushed up prices. July is typically the second busiest month of the year on the roads behind August. Last year Americans drove a total of 263.2 billion miles in July.
- Gas prices nationally have stopped increasing and have remained relatively flat in recent days as the situation stabilizes in Iraq. The conflict in Iraq is unlikely to send gas prices significantly higher unless there are major developments in Baghdad or in the southern oil producing regions.
Next article: Madigan & Co. prevails; redistricting reform dead for at least two years as Yes for Independent Maps calls it quits.
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Kevin Hoffman is a Reboot Illinois staff writer who graduated from the University of Iowa with a degree in journalism, political science and international studies. He believes keeping citizens informed and politicians in check is the best way to improve Illinois and bring about common sense reform. Follow us on Facebook.