$5-Plus Per Gallon! 10 States With the Highest Gas Prices in June 2022.

  • The national average price for a gallon of gas is $4.86.
  • Furthermore, the cost for a barrel of West Texas Intermediate (WTI) crude oil is at $118.
  • At the beginning of the year, the cost for a barrel of WTI was $76.
Highest gas prices - $5-Plus Per Gallon! 10 States With the Highest Gas Prices in June 2022.

Source: Carsten Reisinger / Shutterstock.com

National average prices at the gas pump have shown no signs of stopping. Today, the average price for a gallon of gas sits at $4.86 for regular gas, compared to $3.05 a year ago. California currently holds the highest national average of gas prices, while Georgia falls in last place.

Meanwhile, Axios predicts that national averages for gas may soon hit $5.15 per gallon. This is because benchmark futures prices for gas recently hit $4.19 per gallon. The futures contract is the price of Reformulated Blendstock for Oxygenate Blending (RBOB), which can be described as “unfinished” gas. The unfinished gas is then sent to distribution hubs to be blended with ethanol to make the final consumer gas product. Historically, the differences between gas benchmark futures prices and the national average is 97 cents. If this relationship holds true, then we could soon see national average gas prices of around $5.15 per gallon.

Last week, the U.S. experienced a 5% decline in the amount of gas pumped. The decrease was smaller than expected and shows how gasoline is an inelastic product. An inelastic product means that demand for the product will not change significantly when price changes. On the other hand, an elastic product means that demand for the product will change significantly in relation with price.

On average, the typical American purchases 90 gallons of gas per month. With consumers spending more money on gas, there is concern that discretionary spending for other products will decline. This can ultimately act as a major headwind for the economy and increase recession risks.

Moody’s Analytics Chief Economist Mark Zandi explains:

With oil prices at $115 a barrel, it’s very uncomfortable. At $130 a barrel, we’re on the edge. If it gets to $150, I don’t think there’s any way not go to into recession.

Now, with that in mind, let’s take a look at the states that have the highest average gas prices this month.

10 States With the Highest Gas Prices in June 2022

#1 California

  • Regular: $6.34
  • Mid-Grade: $6.51
  • Premium: $6.65

#2 Nevada

  • Regular: $5.49
  • Mid-Grade: $5.68
  • Premium: $5.90

#3 Hawaii

  • Regular: $5.47
  • Mid-Grade: $5.67
  • Premium: $5.96

#4 Oregon

  • Regular: $5.41
  • Mid-Grade: $5.57
  • Premium: $5.78

#5 Washington

  • Regular: $5.40
  • Mid-Grade: $5.56
  • Premium: $5.75

#6 Illinois

  • Regular: $5.40
  • Mid-Grade: $5.78
  • Premium: $6.16

#7 Alaska

  • Regular: $5.37
  • Mid-Grade: $5.55
  • Premium: $5.77

#8 Arizona

  • Regular: $5.13
  • Mid-Grade: $5.40
  • Premium: $5.67

#9 District of Columbia (DC)

  • Regular: $5.06
  • Mid-Grade: $5.57
  • Premium: $5.74

#10 Michigan

  • Regular: $5.05
  • Mid-Grade: $5.33
  • Premium: $5.67

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2022/06/5-plus-per-gallon-10-states-with-the-highest-gas-prices-in-june-2022/.

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