US motorists gearing up for his or her warm weather road trips are set to come across fresh record high gas prices this week as inflation continues to hammer household budgets.
The national average price of a gallon of gas was $4.328 as of Monday afternoon, based on AAA data. That price was up about 20 cents in comparison with one month ago and well over a dollar higher than the identical day one yr ago.
The fee of gas is inside a fraction of the all-time high established in March, when the national average hit an unprecedented $4.331 because the Russian invasion of Ukraine caused disruption to global energy shipments.
In Latest York, gas prices have already hit a recent record. The statewide price of standard gas was $4.518 – nearly 30 cents higher than one month ago – while diesel hit an absurd $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 value surge.
Oil prices hovered near $110 per barrel last week because the European Union weighed a possible ban on Russian energy shipments in response to the Ukraine war. A possible embargo further upended an energy market that was already contending with supply concerns and disruptions related to the COVID-19 pandemic.
The fee of products and services have surged within the last yr.AFP via Getty Images
US crude oil prices moderated barely on Monday, sinking nearly 7% to $102 per barrel during a pointy selloff on Wall Street and anxious about renewed COVID-19 lockdowns in China.
The Labor Department’s most up-to-date Consumer Price Index from March showed the extent to which gas prices are contributing to inflation.
The March CPI surged 8.5%, its highest annual rate since 1981. That very same month, gas prices rose 18.3% — a rise that accounted for greater than half of the monthly inflation surge.
The Biden administration sought to alleviate pressure on US motorists by releasing tens of thousands and thousands of barrels of oil from the strategic reserve – but that measure has had little sustained impact on prices.
Prices are more likely to proceed climbing in the times ahead.
“While motorists filling with gasoline have seen a slight rise in prices, diesel’s surge shall be a double whammy as diesel prices will soon be passed along to retail channels, further pushing up the price of products,” GasBuddy analyst Patrick De Haan said.