GASOLINE PRICES HIT NEW ALL-TIME HIGH

Gas prices in the United States hit a new high on Tuesday, as President Joe Biden declared that combating inflation is his top domestic priority.

According to the American Automobile Association (AAA), the average gas price reached $4.37 per gallon, breaking the previous high of $4.33 recorded on March 11.

A year ago, the average price per gallon was $2.97.

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According to Andy Lipow, an analyst at Lipow Oil Associates, “gasoline and diesel (reached) a record high today” in data that hasn’t been adjusted for inflation effects.

Gas prices have risen in tandem with global crude oil prices as “the globe seeks alternate supply to Russian oil,” he said.

Crude prices were already rising as the economy recovered from the effects of Covid-19. However, once Moscow invaded Ukraine in late February, prices surged, prompting several world leaders to impose sanctions on Russia.

More expensive oil implies more expensive fuel, according to AAA spokesperson Andrew Gross. Oil is presently trading for around $100 per barrel.

The new high prices are troubling Americans, as they follow an overall price increase of 8.5 percent since March 2021.

The public outcry has prompted the Biden administration to take steps to combat inflation.

“Americans have never seen gasoline prices this high, nor have we seen hikes this rapid and furious,” said Patrick DeHaan, head of petroleum analysis at specialist site GasBuddy. “It’s a bad scenario that isn’t going to get any better any time soon.”

Biden reassured Americans on Tuesday that his administration was doing everything possible to lower prices without harming the economy.

He remembered that, in order to counteract rising oil prices, the US will release one million barrels of oil per day from emergency stockpiles over the next six months.

“The Republicans have offered plenty of blame but no clear idea to bring down energy prices,” Biden stated on Tuesday.

However, the White House has not yet decided whether to suspend the federal tax of 18 cents per gallon in order to lower gas costs.

According to Lipow, this would be “the quickest way to give the consumer some price relief.” “But, aside from that, the administration has very limited choices for instantly increasing oil supplies and lowering prices.”

He expects gas prices to rise another ten cents per gallon in the coming days, especially as the summer travel season approaches in the United States.

“We expect strong demand when Americans get back on the road after being stuck at home for the past two years,” he said.