Gas prices could rise to $3 per gallon on Long Island

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Hewlett Bay Park resident Brenda Wilbur typically buys the gas for her car at the Sunoco station at the intersection of Mill Road and Peninsula Boulevard in Hewlett and noticed that in the past few weeks the prices have zoomed up from $2.15 per gallon for regular gas to $2.43, and the BP station on the opposite side of Peninsula Boulevard was $2.61 as of Jan. 20.

“We were told we have a big supply of gas reserve, Wilbur said, questioning why are gas prices rising now, especially during the winter when prices usually stay flat or decline. “It’s not fair to the middle class and people struggling with the pandemic.”

Earlier in January, GasBuddy, a travel and navigation app that also has people analyzing the petroleum industry, noted “that 2021 may feature a sharp rally in gas prices by year end, warning that the national average could rise to as high as $3 per gallon should the nation broadly recover from the Covid-19 pandemic.” While that could happen the annual average could be a more moderate 27 cents per gallon increase this year.

GasBuddy’s 2021 outlook as anticipates the national average to go up as much as $1 per gallon from a low in January to a possible peak in July, as the country continues to recover from the pandemic, boosting demand as Americans slowly return to pre-pandemic behaviors.

A majority of the country’s population will see prices remain near $2 per gallon. Major cities in California and Hawaii will spend the entire year over $3, while others, including Chicago, New York City, Philadelphia, Phoenix and Seattle could see average prices over $3 per gallon this year.

“Gas prices are not performing their normal trends since we are not in normal times,” said ,” Patrick De Haan, head of petroleum analysis at GasBuddy. “The last 10 months prices and demand have been greatly affected by Covid-19, and as the nation sees economic activity continue to recover, norms are tossed to the side.

“So we can blame the latest round of increases on continued recovery,” De Haan added. “While average prices remain below year-ago levels, its likely we’ll soon exceed those year ago levels due to last year’s onset of Covid-19. Until we’re out from underneath the Covid situation, seasonal norms will have little impact.”

Other variables include global oil reproduction returning quickly to match demand. Should production lack the rebound in demand, consumers are likely to feel it at the pump. With a new president, the country could see a considerable change in oil industry policy and petroleum use.

“As such, expect gas prices to continue to trend higher as the situation improves,” De Haan said. “This has nothing to do with the new Biden administration, and gas prices are unlikely to be impacted for the short-term. Long term, policy changes may impact prices once demand returns to normal levels, as such re-entering the Paris Agreements will have no immediate effect, rather in the years ahead it may impact price. More electric vehicles on the road thus far has had little impact as Americans gravitate toward larger vehicles, and until wider adoption, will continue to have little influence.”