Average national gasoline price surges to $3.83 a gallon, the highest since 2012
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The fuel prices displayed at Chicago gas stations, March 03, 2022. In many areas of the country, gas prices are higher than $4/gallon due to increased demand and shrinking supplies.
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Prices for gasoline are rising, and the average national gas price is now the highest it has been in over a decade. Experts say that the rapid rise in gas prices is putting a strain on consumers and there might not be a halt.
According to AAA data, Friday’s national average price for regular gasoline was $3.83. This is the highest level since September 21, 2012. Prices are rising at a fast clip — Friday’s average is nearly 11 cents above Thursday’s. Americans now pay approximately 27c more per gallon compared to last week and 41c more than one month ago.
Some consumers pay much more. California’s average gallon price is $5.07 per gallon.
President Joe Biden is now having trouble with rising prices. For months, the White House said that they are working to lower them.
This spike is due to an increase in oil prices. West Texas Intermediate crudeThe U.S. benchmark oil price, $116 per barrel, was reached Thursday. highest level since 2008. Russia’s attack on Ukraine, and the subsequent sanctions imposed against its financial sector raise concerns of supply shortages in a market already tightened by Russia’s war.
According to U.S. Energy Information Administration, more than half of the gasoline price is determined by the oil’s cost. Rest of the cost of gasoline is based on costs related to refining and distribution. Marketing, taxes, and taxes are all included.
As the adage goes “the cure for high prices is high prices” and experts say that demand destruction — in the form of high prices — might be the only thing to quell the surge in oil prices.
Wells Fargo puts that figure at $130 for a barrel of oil, or $4.60 per gallon petrol
Patrick De Haan from GasBuddy is the head of petroleum analysis. He said that this month, the national average might reach $4.
He said that “the fallout from Russia’s oil production, or lack thereof, is likely to continue to impact us as we approach the peak of our summer driving season,” Thursday’s CNBC interview. “The Exchange.”
Gasoline futuresAfter jumping to its highest point since July 2008, Friday’s settlement was about 8% lower.
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