U.S. Gas Prices Are Skyrocketing—How Much Worse Will It Get?
The average gas price in the United States is currently at $4.17, the highest recorded, and in certain areas, it’s already far into the $5 and $6 bracket. The headline that everyone seems to be aware of is that gas prices are on the rise. The national average cost of gasoline in the United States surpassed $4 (per gallon) for the second time in history.
This last happened in 2008. In other parts of the nation, $4 is a significant discount. This week, the average price of a gallon of gasoline in Los Angeles County was $5, the very first time that figure has ever been attained. Premium fuel is selling for $7.25 per gallon at several Los Angeles gas stations.
Gas in the Philadelphia region reached $4.05 per gallon close to the end last week, up 43 cents from the previous month. Patrick De Haan, GasBuddy’s head of petroleum analysis, tweeted that San Francisco had also reached $5 a gallon, and informed USA Today that in the coming weeks, more cities are likely to follow suit.
President Biden informed the nation in his State of the Union address this week that the Ukrainian invasion by the Russian military would affect each American. In reaction to Russia’s activities, Biden stated that the United States and 30 other countries were collaborating to release 60 million barrels of oil throughout the world from strategic reserves. 30 million of the barrels will be from America’s Strategic Petroleum Reserve, according to Biden, who claims the move will help soften the price of gas in the United States.
AAA, which uses its own methods to compute typical gas prices, concluded that the price was $3.922 on Saturday. The highest ever recorded nationwide price for a gallon of gasoline set by AAA was $4.114 on July 17, 2008. That is also the date on which GasBuddy recorded $4.103. its highest-ever price record.
According to a statement made by GasBuddy regarding this record, although international sanctions are damaging Russia’s crude oil exports are one source of the price jump, that isn’t the only reason GasBuddy anticipates fuel costs to increase further.
They added that seasonal variables such as refinery maintenance, increasing gas consumption, and the transition to summer-blend gas, combined with the present geopolitical concerns, could push prices upwards to $4.25 for each gallon by end of May.
On the plus side, the company’s 2022 Fuel Outlook projects that prices will begin to fall after that, with a national average of $3.78 by December 2022. That figure used to appear high, but everything is relative.