Gas prices broke records today and officially reached the highest point in U.S. history. And unfortunately, experts don’t expect a break for months.
At a Glance
- Gas prices officialy reached an average of $4.17 on Tuesday, which breaks the previous record set back in 2008.
- The war in Ukraine is causing supply issues that will continue to affect costs.
- President Biden’s ban on Russian oil will further the supply issues as the country is responsible for 7% of U.S. oil imports.
- Experts predict that prices will remain above $4 until November or later.
Regular Gasoline Costs an Average of $4.173 per gallon
On March 8th, the national average for regular unleaded fuel hit $4.173 per gallon. The cost surpassed the previous price record of $4.103, which was set on June 8th, 2008.
The average was an overnight 11 cent hike. And overall, the cost is 72 cents higher than it was one month ago.
And that’s not the worst news of the day. Experts with GasBuddy don’t expect the prices to peak until May. Sometime during the month, the publication believes the cost will hit an average of $4.25. Then, the cost will hover above $4 a gallon until at least November.
“That combination makes this situation all the more remarkable and intense, with crippling sanctions on Russia curbing their flow of oil, leading to the massive spike in the price of all fuels: gasoline, diesel, jet fuel, and more,” he added.
With the grime outlook, GasBuddy is asking drivers to restrict travel to help ease supply issues.
“It’s a dire situation and won’t improve any time soon, De Haan noted. “The high prices are likely to stick around for not days or weeks, like they did in 2008, but months. GasBuddy now expects the yearly national average to rise to its highest ever recorded.”
The Russian Invasion is Causing the Price of Crude Oil to Skyrocket
The was in Ukraine is causing the already struggling world oil markets to buckle more. And on Tuesday, President Biden is expected to announce that the U.S. is banning Russian oil imports, which will make prices rise higher.
Currently, the U.S. imports about 672,000 barrels a day from Russia. The number accounts for around 7% of all foreign oil imports.
Between the invasion and the recent ban, the price per barrel went from $90 before the war to over $120 on Tuesday. Each time the price per barrel rises $10, the cost at the pump jumps about 20 cents.