Gas prices are headed to $6 a gallon in the US as the summer driving season kicks off, JPMorgan says

• Gasoline prices are set to hit $6 a gallon on average in the US, says JPMorgan.
• Strong demand for fuel during the summertime driving season should propel prices at the pump.

Californians are shelling out $6 a gallon for gasoline and the rest of the US looks set to join them in paying such a hefty price for fuel, according to a projection from JPMorgan.

"With expectations of strong driving demand … US retail price could surge another 37% by August to a $6.20/gal national average," Natasha Kaneva, head of commodities research at JPMorgan, said in a note Tuesday. The outlook arrived days ahead of the Memorial Day holiday, the traditional start of the summer driving season that runs until Labor Day in early September.

The 37% figure stems from the national average retail price of gas topping $4.50 a gallon for the first time on Tuesday. That price was up about $0.50 from a month ago, and marked a "massive jump" from $3.04 a gallon on the same day in 2021, said Kaneva.

Motor club AAA shows California's average price for a gallon of regular-grade gasoline at $6.05.

Gas prices in the US have soared on the back of the surge in oil prices this year, particularly after oil producer Russia launched its war against Ukraine in late February. Brent crude, the international benchmark, and West Texas Intermediate crude, have surpassed $100 a barrel and at the peak so far in 2022, Brent oil leapt toward $140 a barrel. Brent and WTI prices on Wednesday traded around $109 a barrel.

Oil prices have pulled back from this year's highs but gas prices have been steadily climbing. The US has reached an "expensive milestone" with residents in nearly every state in the US now paying at least $4 a gallon for gas, AAA said this week.

"The high cost of oil, the key ingredient in gasoline, is driving these high pump prices for consumers," Andrew Gross, a AAA spokesperson, said in the motor club's statement on Monday. "Even the annual seasonal demand dip for gasoline during the lull between spring break and Memorial Day, which would normally help lower prices, is having no effect this year."

The annual switch to the more expensive summer blend of gasoline was underway, a change that usually adds 7 cents to 10 cents a gallon on gas prices depending on the market, said AAA.

Gas prices in Georgia, Kansas, and Oklahoma were still below $4 a gallon, said AAA.