Drivers paid highest New Years gas prices in 3 years

Drivers paid highest New Yearês gas prices in 3 years

The New Year began with increased gas prices, reaching a national average of $2.34 per gallon, according to the American Automobile Association. The increase is largely caused by market reactions to last fallês OPEC deal, when OPEC members agreed to limit oil production.

The DC region has the distinction of being the fifth most expensive market in the nation, at $2.59. The most expensive are Hawaii ($3.01) and California ($2.76). The least expensive state is South Carolina, at $2.10.

Moving into 2017, retail prices will continue to hinge on the ability of cartel countries to successfully make production cuts. Average retail gas prices are likely to increase leading up to the summer driving season as seasonal refinery maintenance gets under way this spring.

Current auto sales more than half of which are utilities and light trucks depend heavily on cheap gas. But we are still a long way from summer 2008, when gas topped $4.00 a gallon.