Memorial Day gas prices are the highest in seven years and could stay high all summer

Gasoline prices are expected to be the highest for a Memorial Day weekend in seven years, and prices could stay elevated all summer, as Americans take to the road in a post-coronavirus pandemic driving spree.

The current average price for a gallon of unleaded gasoline of $3.04 per gallon, 16 cents more than a month ago and $1.08 per gallon higher than last year, according to AAA. The motor club federation expects 37 million Americans to travel this weekend, a 60% increase over last year when the economy was still shut down.

Gas prices jumped earlier this month, particularly in the Southeast, after the Colonial Pipeline went off line for six days after a ransomware attack. In some Southern states, gasoline jumped more than 20 cents per gallon as panicked drivers filled their tanks and shortages shut down stations.

Gasoline demand last week reached 9.5 million barrels a day, the highest since March 13, 2020, which was just when the economy began to shut down, according to the latest Energy Information Administration data.