See what you click on FoxBusiness.com.
The average national retail price of regular gasoline reached $ 5 a gallon on Saturday for the first time in more than two decades, according to AAA.
This is the highest level the group has seen rising gas prices since it began tracking data in 2000, and is likely to worsen as oil demand continues to outpace global oil supply, leading to even more “High barrel prices,” said AAA spokesman Devin Gladden.
As of Saturday, pump prices are 63 cents higher than a month ago and nearly $ 2 more than a year ago, according to AAA.
GAS PRICES RISE BY 5 CENTS PER NIGHT, AMERICAN PEOPLE PAY CLOSE $ 2 MORE THAN A YEAR AGO
Gladon noted that oil prices reached $ 120 a barrel this week, which also saw Russia invade Ukraine for the first time. What soon followed was a continuous series of record high gas prices. The price of oil is 50% of what consumers pay for the pump.
A customer pumps gas in his car at a gas station on May 18, 2022 in Petaluma, California. (Photo by Justin Sullivan / Getty Images) / Getty Images)
There are many factors that cause more pain in the driver’s pump: Sanctions imposed on Russia for its invasion of Ukraine; higher fuel demand as drivers “regain their travel time” after being limited in the last two years; and the official start of hurricane season, which could further jeopardize supplies.
“Even the threat of a hurricane that could halt crude oil production, especially off the coast of the Persian Gulf, could also lead to higher oil prices,” Gladon said.
If the price of oil reaches $ 140 to $ 150 a barrel, “we will see significantly higher gas prices.”
GAS PRICES WILL RISE $ 6 e. nationwide UNTIL AUGUST, SAYS JPMORGAN
However, Gladden does not see consumers pushing the brakes, despite the fact that some became cautious when prices reached $ 4 a gallon.
Rather, “we see people making different economic decisions,” he said. “So it may not necessarily affect gas use, but it may be that they eat less and spend less dollars on discretionary costs.
The higher the prices, the “more creative engines will be the way to save money” in other areas of your life, Gladon said.
Add Comment