GAS: Drivers In May See Large Scale Price Spikes At Pump With Prices Up 38 Cents Nationally

Prices at the pump in May rose at more than a penny a day as the national average for a gallon of regular hit $4.48 some 38 cents higher than the average in April according to the daily national gas price survey by AAA.

Even among higher cost states like Massachusetts, Hawaii, Illinois, Oregon, and Washington, California drivers faced the highest prices with prices moving up by 22 cents and a statewide average at $5.95 a gallon.

At that price, California drivers paid on average 33% more than drivers in nearly any other state in the nation.

Energy prices are a major driver of inflation and the cost of any good or service in the economy. According to the federal Bureau of Labor Statistics for the month of May, 60% of the increase in the base rate of inflation, which stood nationally at 4.2% (CPI), was due to the 23.5% increase in the per gallon cost of gasoline and energy generally.

The Association of Western Employers has tracked energy costs closely for years and will continue to do so into the future.