Gas prices rose on Sunday to the highest level since 2008, hitting $ 4 for only the second time ever, as RussiaThe war in Ukraine has dramatically affected the cost of crude oil.
The national average for a gallon of gas hit $ 4,009 on Sunday, according to AAA, which is the highest since July 2008, not adjusted for inflation.
The war in Ukraine, coupled with rising home inflation of 7.5 percent, are the main culprits why drivers spend more than $ 100 to fill a full tank of regular lead-free gas in nearly a third of the country.
Andy Lipow, president of Lipow Oil Associates, said the next stop for the national average is $ 4.50 per gallon as supply disruptions across the energy complex ripple.
“Oil buyers are reducing their purchases of refined products from Russia, causing Russian refineries to close,” he said. Dockers refuse to release ships carrying oil and gas. The insurance rates are skyrocketing, causing shipowners to cancel ship bookings in Russia and this also affects Kazakhstan’s ability to sell its oil. ‘
Gas prices rose Friday by an average of 15.8 cents per gallon in the US and were up 8 cents again on Saturday – as the cost of the pump increased by 33 cents last week.
It was the second-highest peak in gasoline prices ever recorded and only hit by the 18.1-cent peak when Hurricane Katrina swept through the Gulf in August 2005.
Gas prices have risen by 37 cents since Russia invaded its neighbor.
There are now eleven states – California, HawaiiNevada, Oregon, Washington, Alaska, Illinois, Arizona, New York, Connecticut and Pennsylvania – where the average price is already more than $ 4 per gallon. Another six states have average gas prices hanging close to $ 4 per gallon.
Prices for gas and diesel fuel, in excess of $ 5 per gallon, will be displayed at a gas station in Monterey Park, California on Friday. Californians have long had the highest gas prices in the nation
The gas price hit a record high on Sunday. The national average reached $ 4,009
The current national average increases as a result of sanctions on major oil producer Russia, up 50 cents from February and up $ 1.17 from a year ago
One Twitter account detailed how gas prices rose by an average of 15.8ca gallons on Friday – the second-highest peak ever hit only by the 18.1c peak when Katrina pushed through the Gulf
Those who filled their cars Friday are struggling with the spiraling costs.
California drivers pay on average more than $ 5 per gallon ($ 1.34 per gallon), according to the American Automobile Association (AAA), more than a third of a year ago.
“It’s going to affect prices,” said resident Mike Hernandez, referring to the conflict in Eastern Europe. “I’m not really into politics or anything, but now that this thing is happening between Russia and Ukraine, it’s just so sad.”
Russian President Vladimir Putin’s invasion of neighboring Ukraine has sent financial markets into meltdown.
Gas prices are at the fastest rate in history since Hurricane Katrina in 2005. Gas prices above $ 5 a gallon will be posted Friday at a gas station in the Alhambra, California
Gas prices have risen 27 cents since Wednesday and 38 cents since Russia’s invasion of Ukraine nine days ago
Prices for crude oil, the raw material for gasoline, have hit hard, and are well above $ 110 per barrel, with players worried about the impact on Russian supplies as sanctions pollute Moscow from the world economy.
The average price of gas a year ago was $ 2.75 per gallon. Prices recovered from the pandemic when orders for home and business closures reduced demand for gasoline.
A shortage of supply resulted in a guest shortage last summer, sending US gas prices high after seven years.
‘This is not the end of it. We are already up 14 cents this morning on wholesale gas prices, ‘said Tom Kloza, global head of energy analysis for OPIS after CNN.
‘It’s completely out of control. If you get this rap and this dramatic increase, you’re really burning the audience, ‘he said.
While all countries have access to the same petrol, subsidies or taxes levied locally mean that the ultimate costs to consumers vary wildly.
For example, in oil-producing Nigeria, which subsidizes fuel, the official price is 40 US cents per liter.
Hundreds of Ukrainian Americans and others are protesting near a gas station, with high gas prices, during a rally marking Russia’s invasion of Ukraine along Santa Monica Blvd in LA.
In Hong Kong, drivers will already pay US $ 2.50 per liter by 2021, according to the Economist Intelligence Unit.
On average, Americans pay about $ 1 per liter, according to the AAA, and even California $ 1.34 per liter is well below the prices paid by Europeans.
“It’s expensive, but it’s always been more expensive here in California, so I think we’re used to it,” Harry Lee said as he refueled Friday on his way to work in Los Angeles. “I will be happy when it comes down to it, but so far it has not affected me too much,” he added.
‘My cousin, who drives for Uber here in LA, complains a lot though. I think it could be difficult for him if the gas stays at this level for too long. ‘
California’s relatively high gas prices are the result of state taxes, such as stricter refining rules that require specific fuel formulas designed to reduce air pollution during the hot summer months.
People are pictured in line to buy gas in the aftermath of Hurricane Katrina in 2005 when oil refineries closed and others were forced to reduce operations. Gas prices rose sharply
While many drivers have grumbled about seeing pump prices rise almost every day, some say they are willing to pay the extra cost because of the photos of the war in Ukraine they see on the news.
“I would rather have high gas prices here than an authoritarian regime in Ukraine,” said Los Angeles resident Jacqueline St-Anne.
“If we need to suffer from a bit of inflation and gas prices for a while to ensure that such a beautiful country as Ukraine has a chance to develop its democracy, then we need to do that.”
For others, there is a simple solution to pay by the nose.
“I just bought a Tesla,” said Matthew Reynl, about the electric car. “That’s my solution to go up in gas prices.”
Workers in the UK refuse to unload Russian oil from a German flag ship docked at a major British oil refinery. The ship Seacod is at a terminal on the River Mersey, whose oil is normally pumped to Stanlow Oil Refinery
National average for a gallon of gas tops $4, the highest since 2008 Source link National average for a gallon of gas tops $4, the highest since 2008