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"People Are Freaking Out As Gas Prices Shoot Up
All Across The US And Panic Buying Hit Stations"
By Epic Economist
"A new week begins - and U.S. motorists should brace for a wild ride. Several reports reveal that a panic buying wave is hitting gas stations in the Southeast as fears of shortages continue to rise in the region. At the same time, the Northeast is about to see the biggest increases at the pump in the coming days due to exceptionally low supplies. Nationwide, drivers are watching gasoline prices shoot up to five-month highs. Industry specialists say oil production cuts are adding immense pressure on the market, and causing inventory disruptions that will make the outlook even more painful for Americans this summer.
Gasoline prices continue to rise for a fourth consecutive week, with the national average reaching the highest level since November. Yesterday, the average price for gasoline jumped to $3.71 a gallon, rising by 10 cents from a week ago, according to GasBuddy data compiled from more than 11 million individual price reports. The highest price for gasoline is now selling for $4.87 a gallon in California, while consumers are shelling out $4.76 a gallon in Hawaii and $4.52 in Arizona.
Right now, approximately 83% of gas stations in the U.S. have already run out of the cheaper winter blend. Refineries have already switched over to the pricier summer blend, and that can add roughly a dollar to the national average, while some states are likely to see a $1.75 to $2 increase in the months ahead.
The Northeast region is reaching the "final step" in switching over to summer gasoline this week. Drivers in those states should expect a sharp rise in gasoline prices over the next week or two. "Every other region has already seen the final step in the transition occur, so while other areas will see prices continue to slowly rise, the Northeast is likely to see a pretty hefty jump of 40 cents per gallon soon,” analyst Patrick De Haan said.
Meanwhile, in the Southeast, reports of gasoline outages and panic buying at various gas stations sparked anxiety among drivers. According to the AAA, historic flooding interrupted operations at fuel terminals in Port Everglades, which is the hub for about 40% of the gasoline that sails into Florida. The statement led people to rush into the stations to fill up their tanks before supplies ran out. The panic buying wave got such extreme proportions that Miami-Dade County Mayor Daniella Levine Cava urged consumers to “please only purchase gas when you absolutely need it."
The national outlook isn’t any more reassuring. In March, De Haan predicted that Americans would be paying $4 a gallon for gasoline by May. On Wednesday, he warned on Twitter that this mark could be reached by the end of this week. “Here's your final warning,” he wrote. “The time to fill up is now. You're going to soon see gas prices jump 25 cents per gallon.”
The energy crisis will continue to accelerate as we get closer to the second half of the year, and with it more bad news will arise for U.S. consumers. The threat of fuel shortages is real, and it can have catastrophic effects on our struggling economy. We should all watch the developments of this crisis very closely because the panic buying frenzy has already begun."
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