According to JPMorgan, gas prices will top $6 nationwide by August

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The average national retail price for a gallon of regular gasoline is expected to top $6 by the summer, according to a recent research note from JPMorgan.

On Wednesday, the national average hit another record, hitting $4.56 a gallon, according to the AAA. That’s already almost 50 cents up from a month ago and $1.52 up from this time last year, according to the latest data from AAA.

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According to JPMorgan, prices could rise another 37% through August to reach a national average of $6.20 a gallon.

This is due to “expectations of strong demand” during the summer driving season, which stretches from Memorial Day through Labor Day, wrote analysts led by Natasha Kaneva, head of JPMorgan’s global commodities strategy team.

“Typically, ahead of the summer season for road trips, refineries produce more gasoline and build up inventories,” the analysts said. Since mid-April, however, “gasoline stockpiles have declined counter-seasonally and are now at their lowest seasonal levels since 2019,” the analysts continued.

Analysts warned that “East Coast gasoline balances have tightened even more, falling to their lowest levels since 2011.”

GAS PRICES REACH $4 FOR THE FIRST TIME IN ALL 50 STATES, THE NATIONAL AVERAGE REACHES A RECORD HIGH

Earlier this week, Los Angeles became the second subway to join San Francisco, with the average cost of a gallon of gas topping $6.

“It’s likely more California cities will join,” Patrick De Haan, head of petroleum analysis at GasBuddy, told FOX Business. However, De Haan noted that he doesn’t yet see other cities “at high risk of hitting $6.”

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However, according to the AAA, the average cost of a gallon of gasoline exceeded $4 for the first time in all 50 states, due to high oil costs.

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