Gas prices in US returned to near-record highs, hurting motorists

As inflation continues to wreak havoc on household budgets, US travellers planning summer road excursions are likely to face new record high gas prices this week.

According to AAA data, the national average price of a gallon of gas was $4.328 as of Monday afternoon. That price was up roughly 20 cents from a month ago and well over a dollar from a year ago on the same day.

Gas prices are only a quarter of what they were in March, when the national average hit an all-time high of $4.331 as the Russian invasion of Ukraine disrupted global energy imports.

Gas prices in New York have already surpassed previous highs. Regular petrol was $4.518 statewide, over 30 cents higher than a month ago, while diesel was an outrageous $6.383.

“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,” AAA said in a blog post detailing the price surge.

Last week, oil prices were hovering around $110 per barrel as the European Union considered imposing a ban on Russian energy imports in response to the Ukraine conflict. An embargo might further upset an energy market that was already dealing with supply difficulties and outages due to the COVID-19 epidemic.

On Monday, US crude oil prices fell about 7% to $102 per barrel, owing to a dramatic selloff on Wall Street and concerns about renewed COVID-19 lockdowns in China.

The most recent Consumer Price Index from the Labor Department, released in March, revealed how much gas costs are adding to inflation.

The CPI increased by 8.5 percent in March, the highest annual pace since 1981. Gas prices jumped 18.3 percent in the same month, accounting for more than half of the monthly inflation increase.

The Biden administration attempted to relieve pressure on US motorists by releasing tens of millions of barrels of oil from the strategic reserve, but the move had no long-term effect on prices.

Prices are expected to rise more in the coming days.

“While motorists filling with gasoline have seen a slight rise in prices, diesel’s surge will be a double whammy as diesel prices will soon be passed along to retail channels, further pushing up the cost of goods,” GasBuddy analyst Patrick De Haan said.

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