Labor Day weekend pushes gasoline prices to the highest
August 31, 2012- Across the nation, gasoline prices are the highest they have ever been, as the Labor Day weekend starts. Some drivers have had to reconsider their travel plans for the holiday that traditionally ends the summer season for the nation.
According to the Automobile Association of America (AAA), a gallon of gasoline on the east coast of the country was $3.73 or 12 cent higher than it was last year and a record for this time of year. Hurricane Isaac caused some oil rigs to shut down along the nation’s Gulf Coast making prices spike in certain areas.
The national average is $3.83 per gallon and that increased by 2 cents on Wednesday and was expected to increase on Friday ahead of the weekend. Now, many travelers might have to rethink their original plans. However, AAA still expects that close to 33 million people in the U.S. will travel at least 50 miles from their residence over the three-day weekend.
Prices of fuel have steadily increased in the last few weeks as tensions between Israel and Iran have heightened and have caused worries over the region’s stability for crude oil. In addition, Hurricane Isaac added to the worries over supply as close to 90% of the U.S. Gulf of Mexico oil production shut down on Tuesday.
The cost of crude accounts for nearly 65 % of a gallon of gas. On Thursday, crude closed in New York at $94.62, which was down from Wednesday by 87 cents, but still over $10 higher a barrel from early July.