The average American driver will pay a record price at the pump on Tuesday as Russia’s invasion of Ukraine disrupts global energy supplies and drives up gas prices.
The national median price for a gallon of gasoline was $4.17 as of Tuesday morning, according to AAA data. The latest numbers break the previous record of $4.11 set in July 2008.
Analysts are warning that prices could get even worse in the coming days – especially if geopolitical tensions between Russia and Western nations escalate.
“It’s a bad situation that’s not going to get better any time soon. The high prices will probably not last for days or weeks like in 2008, but for months.” gas buddy said analyst Patrick De Haan. He added that Gas Buddy “expects the annual national average to rise to the highest level on record”.
Rising energy costs are a key factor driving blistering inflation in the US economy. Economists expect the forthcoming CPI to show inflation rising 7.8% in February – the highest rate in decades.
US gas prices have risen at a shocking rate. The national average was about $3.46 a gallon just a month ago and just $2.77 a gallon a year ago.
Drivers living in high-tax states face the highest bills. California has the highest national average with prices as low as $5.44. In New York, the statewide average is $4.37 — also well above the national average.
As The Post previously reported, some analysts say U.S. gas prices could soon reach $5 a gallon — and possibly far beyond.
The US oil benchmark traded above $122 a barrel this week. Oil prices are expected to surge much higher if the US bans Russian oil and gas imports, further impacting an energy market that has struggled to meet demand during the COVID-19 pandemic.
Meanwhile, a senior Kremlin official claims oil will hit $300 a barrel if the US and Europe proceed with a ban.
During his State of the Union address earlier this month, President Biden warned that Russia’s invasion of Ukraine would have “costs around the world.”
Biden pledged to “use every means at our disposal to protect American businesses and consumers” and has already authorized the release of tens of millions of barrels from the Strategic Petroleum Reserve. But so far these steps have done little to ease the pressure on US budgets.
https://nypost.com/2022/03/08/us-gas-prices-hit-record-high-as-russia-ukraine-war-rages/ US gas prices hit record high as war rages between Russia and Ukraine