Gas Prices Surge to Another Record – And Could Go Higher
The national average price for a gallon of gas has reached yet another record high. According to AAA , as of Tuesday morning, the national average for a gallon of gas is $4.37. That is up from $4.11 a month ago and…
The national average price for a gallon of gas has reached yet another record high.
According to AAA, as of Tuesday morning, the national average for a gallon of gas is $4.37.
That is up from $4.11 a month ago and $2.96 a year ago.
AAA notes that the average price of gas rose 20 cents over the last two weeks, and it has now surpassed the record high of $4.32 that was set on Mar. 11.
Andrew Gross, a AAA spokesperson, said, “With the cost of oil accounting for more than half of the pump price, more expensive oil means more expensive gasoline.”
“According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 2.2 million bbl to 228.6 million bbl last week,” AAA explained.
It added, “However, gasoline demand increased slightly from 8.74 million b/d to 8.86 million b/d. Increasing gas demand and rising oil prices have pushed pump prices higher. Pump prices will likely face upward pressure as oil prices remain above $105 per barrel.”
Still, GasBuddy’s Patrick De Haan tweeted, Keep in mind, when considering inflation, 2008’s peak of $4.10/gal would be the equivalent of $5.36/gal today (using BLS calculator).”
“So the ‘pinch’ of today’s $4.36/gal still isn’t as bad as 2008,” he added.
Gas Prices rose last year, but the increases accelerated earlier this year after Russia launched its invasion of Ukraine.
In March, the White House announced that President Joe Biden had approved a “historic release” from the Strategic Petroleum Reserve to help alleviate rising prices.
Under that plan, 1 million barrels of oil would be released from the reserve every day for the next six months.
Biden also announced that E15 gas will be allowed to be sold this summer.
The sale of that blend is normally prohibited between June and September due to the Clear Air Act.
While the move is intended to provide relief, NPR notes, “The impact on Gas Prices remains to be seen. Compared with E10 gas, there is limited infrastructure to sell E15 gasoline because not all vendors are willing to invest in a product that cannot be sold year-round.”
While conservatives blame Biden in part for the higher prices, White House officials point the finger at what they call the “Putin price hike.”