US Gasoline Average Price Tops $5 Per Gallon For Historic First

For the first time in US history, the average price of gas has reached five dollars per gallon. AAA reports the price is $5.01 a gallon, up 58 cents from one month ago. Prices are projected to remain high through summer, despite the sluggish global economy. Here are some of the reasons why prices have hit five dollars. We’ve all seen ads for gas that are over five dollars a gallon.

Global forces are preventing supply from keeping up with demand, and the oil-producing countries, such as Russia, have been squeezing the global market. The European Union’s ban on Russian oil imports doesn’t go into effect until the end of the year, but sanctions against Russia have been wreaking havoc on global energy markets. Americans will be driving more this summer, likely starting Memorial Day. In addition, the lifting of covid restrictions in certain Chinese cities will drive fuel demand.

On Saturday, the national average for gasoline hit $5.01. In California, prices are even higher at $6.43 per gallon. Meanwhile, the average in Nevada, Illinois, Washington, Oregon, and California is all over five dollars. Prices are soaring virtually everywhere. The price of diesel, which is used in trucks and construction, rose 20 cents per gallon last week.

The US economy is facing a serious financial burden as gasoline prices skyrocket. The current record high in prices may push the economy into recession, but this demand is driven by a shortage of supply. Russia’s invasion of Ukraine has contributed to this situation, as have sanctions put on the country’s oil exports. Furthermore, the current strong dollar has pushed the price of oil higher.

With tight supply, gasoline prices are likely to keep rising over the next few months. Experts warn against immediate curbing of inflation. Despite the recent fall in prices, the demand for gasoline has increased. The US has lost nearly a million barrels of refining capacity and the Russia-backed sanctions have made global supplies more scarce. However, household spending on gasoline has decreased. More efficient vehicles also reduce gas costs.

Despite the dire consequences of high gas prices, there are still a few ways to combat the crisis. The White House has taken several steps to address the issue. One of those measures is allowing gasoline blended with ethanol over the summer. However, environmental groups oppose this move. So, for now, the White House must choose the best course of action. While the government has several options to curb gas prices, no one is sure what will happen.