Gas Prices Break New Record After Brief Reprieve
US gasoline prices hit the record-setting level on Tuesday, overturning the modest relief that was seen in April.
The rising cost of oil and the increasing demand for gasoline pushed the average price for gasoline to $4.37 per gallon like the data provided by AAA. As the graph below illustrates that the average price has overtaken the previous record high of $4.33–fallout from the Russian invasion of Ukraine.
The cost for crude oil which is more than half of the price at the pump, was nearly $110 per barrel last week, after dipping just below $100 in April’s final days. (As on the end of Tuesday, prices were at around $100. ) Those increases as in addition to increasing demand and lower supply of gas have forced prices at the pump higher, AAA said.
The average national price for gas was $3.54 per gallon at the time that Russia attacked Ukraine on February. 24. Sanctions against Russia continued to remove up to 3 millions barrels Russian crude off of the marketplace each day, increasing global demand for oil and pushing prices up. Following the White House released oil saved in strategic reserves at the end of March prices started to fall but the trend downward was not long-lasting.
Note
The current trend for diesel fuel, which is also made of oil, is also more troubling. Diesel, which drives the economy by fueling ships, trucks and plans for transporting most of the nation’s merchandise, is shattering new records each day, and topped $5.55 for a gallon in the middle of Tuesday.
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