A new American Automobile Association (AAA) report shows gas prices spiked ahead of long weekend travel and are averaging $3.50 per gallon. This uptick follows an increase in global oil prices which reached more than $80 per barrel at the end of June. 

“Summer got off to a slow start last week with low gas demand,” said Andrew Gross, AAA spokesperson. “But with a record 60 million travelers forecast to hit the road for the July 4 holiday, that number could pop over the next 10 days. But will oil stay above $80 a barrel, or will it sag again? Stay tuned.”

Beginning July 1, several states will adjust fuel taxes and fees, with Indiana leading the pack with an increase to 35 cents per gallon. Meanwhile, Virginia will increase taxes on gasoline, gasohol and alternative fuels to 30.8 cents per gallon. 

Michigan will keep its tax rate the same at 18.8 cents per gallon and will reduce taxes on clear diesel fuel and kerosene to 20 cents per gallon. 

AAA noted recent data from the Energy Information Administration shows a drop in demand from 9.3 million barrels a day to 8.96 billion barrels a day at the end of June. 

As of the end of June, the most expensive gas markets were California where prices have reached an average of $4.80 per gallon, followed by Hawaii at $4.71 per gallon and Washington at $4.21 per gallon. 

The least expensive gas in the nation can be found in Mississippi which has fallen to $2.91 per gallon, followed by Louisiana and Arkansas which both sit at $3.01 per gallon.