According to AAA data, the national average gas price is now $3.61 per gallon. This is an increase of 26 cents over February and nearly a dollar over a year ago. According to price tracker GasBuddy, motorists in the most expensive states are already paying almost $4.50 per gallon.
Patrick De Haan from GasBuddy’s petroleum analysis team tweeted Monday that the average gasoline price in certain U.S. cities would reach $5 per gallon “in a couple of weeks.”
California’s average gas price is $4.80 per gallon. Hawaii comes in at $4.52 and Nevada at $4.02. According to AAA, July 2008 was the most expensive month for gasoline in the United States. It was $4.11 per gallon.
According to GasBuddy, the average price per gallon for the lowest 10% stations in the U.S.A is $3.14 per gal. This is a 10-cent increase over last week.
Inflation fuel
After an agreement between the U.S., other major governments and to release 60,000,000 barrels from national reserves — half U.S. barrels — oil prices soared another $7 per barrel Wednesday. This was in response to supply concerns about Russia’s attack against Ukraine. Brent crude oil, which is the international benchmark for oil prices, rose to $113 per barrel on Wednesday. This was its highest level since 2014. Bloomberg reports that the U.S. benchmark reached $107 per barrel.
Although the International Energy Agency’s 31 members decided to send a clear message to the oil markets that there would be no shortage of supplies due to the invasion of Ukraine, it failed to make a difference.
Tan Boon Heng, Mizuho Bank’s chief economist, stated in a report that markets dismissed the idea that 60 million barrels strategic reserves would be released. This is because of the Russian supply risks. “Russia pumps more than this in six days.”
Russia is a major oil exporter and accounts for around 12% of world’s crude oil supply. Experts say that any disruption in these exports will likely drive up prices at the pump for consumers.
Brian Coulton, chief economist at credit rating agency Fitch, stated in an email that “we think the Russia-Ukraine conflict will intensify global inflation pressures by pushing up crude oil and gas prices.”
