Ever Wonder Why Gas Prices Increase Around Memorial Day? We Have the Answer.

Ever Wonder Why Gas Prices Increase Around Memorial Day? We Have the Answer.

For the past few months, gas prices have remained relatively stable, and relatively low. But as the weather has warmed up and we’ve moved toward spring, they’ve begun to rise. Slowly at first, and then surging as Memorial Day grows closer. By the first day of spring, the national average for a gallon of gas had risen 35 cents, which brought it to nearly $2.60—the highest it had been since November—and it is currently at $2.88. Some of the factors that lead to these seasonal shifts in higher gas prices include increased road travel (demand), “summer blends” of gas, and refinery capacity and repairs.

With more drivers than ever taking to the road this spring, it’s important to make sure that you’re covered in the event of an accident. Call the premier New Jersey auto accident lawyers at Greenberg, Walden, & Grossman, LLC for a no-obligation consultation with an attorney if you find yourself injured in an auto accident this Memorial Day.

What About Oil Prices?

Typically, when gas prices rise, we hear that the real culprit is the price per barrel of oil. And that is usually the main contributing factor. However, this spring, crude oil prices have only seen a modest increase. Seesawing prices have been minor, as OPEC’s production cuts have been carefully balanced by production increases in the United States and Canada. In fact, the United States is now the largest oil producer in the world, for the first time in decades.

Nonetheless, gas prices have been rising across the United States. The rising prices haven’t been evenly distributed either—the Midwest is shouldering the bulk of the burden. In Michigan, for example, the price of gas has risen by 75 cents per gallon in 2019 alone. If this trend continues, other areas of the country will soon be feeling the pressure as well.

Planning to leave Jersey City for a spring vacation? Be wary of other drivers on the road—they might not be as conscientious as you are. If you’re in an accident, contact a New Jersey personal injury lawyer at Greenberg, Walden, & Grossman, LLC immediately. We can help.

Seasonal Shifts

Gas prices almost always rise in the spring, leading up to a peak around Memorial Day, for several reasons—none of them dependent on crude oil prices.

Increased Demand

With more Americans than ever on the road—partly due to more Americans choosing road trips over air travel than in recent decades—the demand for gas is simply soaring. And when demand soars, we can expect to see prices go up, especially if there is also a drop in supply, which we will examine momentarily.

Families often choose spring and summer to travel because of the greater freedom of scheduling, thanks to school spring breaks and summer holidays—and in recent years, fewer families are opting to fly to their vacation destinations.

Summer Gasoline Blends

There’s another small contributor to rising gas prices that coincide with the temperature going up: Special summer blends of gas, which are slightly more expensive than the cold weather blends.

Exhaust interacts differently with warm air versus cold, and this “summer gas” is designed to combat this seasonal reaction and minimize air pollution.

Refinery Capacity

For various logistical reasons, refineries are more likely to be undergoing repairs and upgrades as the weather warms up, which can impact the amount of refined gasoline they turn out. This lower supply, combined with the higher demand posed by warm weather travelers, definitely influences prices.

Don’t let your spring or summer vacation be ruined by legal hassles. Have an aggressive, competent law firm like Greenberg, Walden, & Grossman, LLC on your side. We’ll make the law work for you, whether you were the victim of an accident or are being accused of negligence yourself. Call today!

Budget Responsibly

If you’re planning to travel this spring or summer, you might want to make sure that you’ve left plenty of room in your budget for rising gas prices. The news isn’t all bad, however—prices have fallen, overall. In 2014, many states were seeing prices upwards of $3.50 a gallon.

With warmer weather comes wanderlust! If you’re planning to go on a road trip, make sure you have a solid plan in case of an accident—including having a competent law firm’s number handy. Call Greenberg, Walden, & Grossman, LLC if you have any legal questions or concerns.

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