The retail price of gasoline in US increased unexpectedly, due to the shortage of supply by refineries based in the United States, as per AAA.
The retail price of gasoline was $2.80, which means a six cents increase on a week on week basis and a ten cents increase from the previous month.
As per the AAA motor club, the all-time high level of gasoline retail price in 2015 is due to the lack of supply by refineries, who are unable to supply as per the demand due to their internal problems and shortcomings.
In another report from GasBuddy.com, the gasoline industry in Midwest was the worst hit due to this issue and Indiana and Michigan saw a rise in the retail prices up to 27 cents per gallon in the past one week.
Most of the refineries in the country are selling gasoline at a retail price of over $2.50, which is a massive hike since the past one month. However, there were very few gas stations in US that were still selling gasoline at over $3.50 per gallon.
However, GasBuddy.com also stated that the prices would come back to normal in the Great Lakes Region within June, as a fall in crude oil prices are expected. Due to the fall in gasoline prices, the retail price of gasoline is expected to tank.
To cater to the demand in global markets, Saudi Arabia has increased its oil production and this would help to keep the price of crude oil in check in the global markets. Also, US rigs would increase their efficiency and reliability to ensure continuous supply of gasoline.
As per statistics released by the US Energy Information Administration, the prices would hover around $2.44 in this year and are expected to increase slightly in the next year.