If you’re wondering when prices at the gas pump will start leveling off, don’t expect that to happen anytime soon.
American motorists are paying, on average, $3.28 a gallon for self-serve regular as of Wednesday (Oct. 13), according to tracking services such as AAA and GasBuddy. That’s up more than 10 cents over the past month and by over a dollar compared to October 2020. In parts of Florida, Hawaii and California spikes have hit $5 a gallon.
High Prices Are Bad News for Big SUVs, Pickups
Already, October prices are 44% higher than the average cost of gasoline was in 2020. When fuel prices jump quickly, automakers find that buyers tend to delay plans to buy bigger SUVs or pickups, or shift to smaller vehicles, to hybrids and to EVs. With the shortage of new vehicles of all kinds, the shift is less likely in 2021.
“High fuel costs help accelerate” the switch from gas-powered vehicles to EVs, Brent Gruber, J.D. Power’s senior director of global automotive, said during a media webinar Tuesday. Rising pump prices, combined with a growing line-up of products, could help boost EV sales in the U.S., he added, though likely not to the degree the shift has gained traction in the UK.
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