Gasoline costs surged to the very best degree on report Tuesday as oil holds regular above $100 a barrel, contributing to inflationary pressures throughout the economic system.

The nationwide common for a daily gallon of fuel hit an all-time excessive of $4.374 on Tuesday, in line with AAA. The worth isn’t adjusted for inflation.

Costs have been rising at a quick clip, with the ascent accelerating after Russia invaded Ukraine, sending power markets reeling.

The nationwide common crossed above $4 in March for the primary time since 2008, and has remained above ever since.

Shoppers are actually paying $1.41 extra on the pump than final 12 months.

In some locations, the transfer is much extra excessive. In California, as an example, the state common now stands at $5.84. A handful of counties within the state have topped $6.

Diesel costs, meantime, are additionally surging. The nationwide common hit $5.55 per gallon on Tuesday, additionally a report. Costs have hit a brand new excessive for at the least the previous seven days.

West Texas Intermediate crude futures, the U.S. oil benchmark, traded round $101.66 per barrel Tuesday. That is considerably off its current excessive round $130 per barrel in March.

However whereas oil accounts for greater than 50% of the fee per a gallon of fuel, it isn’t the one issue. The business is grappling with the identical pressures enjoying out in the remainder of the economic system, together with labor constraints.

Refiners, which flip oil into on a regular basis merchandise together with gasoline and jet gasoline, are operating close to most capability. The U.S. refining capability has declined over the previous couple of years, and now Europe is competing for a similar petroleum merchandise because it seeks to maneuver away from Russian power.

Andy Lipow, president of Lipow Oil Associates, forecasts costs for normal gasoline rising one other 15 to twenty cents over the subsequent two weeks, finally hitting $4.50 per gallon.