Gasoline prices hit new all-time highs this week, averaging over $5 a gallon in San Francisco.
While some gas stations are already charging well over $5 a gallon, this is the first time a U.S. city has averaged above $5, Patrick De Haan, head of oil analysis at GasBuddy, tweeted Thursday.
According to AAA data, the average price of a gallon of regular gasoline in the San Francisco area is $5.05, the highest average ever in the city. The Los Angeles area is also seeing prices above $5 a gallon, according to AAA, along with other California cities including Napa, San Luis Obispo, San Rafael and Santa Rosa.
Nationally, the average price of a gallon of gas is $3.73, according to AAA data, up nearly 20 cents in one week and about $1 more. than last year at the same time. AAA noted on Thursday that of all the states, prices rose the most over the past week in Michigan, which saw a 39-cent rise in the average price of a gallon of gas, and Indiana. , where the average rose 36 cents.
While gasoline prices have been rising for months thanks to persistent inflation, supply chain issues and increased demand, the war in Ukraine is adding a new layer of pressure. Russia is a major global supplier of oil, and a series of increasingly severe sanctions imposed by the United States and other countries have disrupted the world oil market and pushed prices above $110 a barrel. . Gasoline prices are closely tied to crude oil prices, meaning any spike in that market is passed on to consumers at the pump.
President Biden has repeatedly assured Americans that his administration is taking action to protect consumers from soaring gas prices, but experts say there is little he can do.
“Like the US stock market, the oil market reacts poorly to volatility,” AAA spokesman Andrew Gross said in a recent statement. “This is an explosive situation and a grim reminder that events on the other side of the globe can have a ripple effect for American consumers.”
And of course, those supply chains and inflationary pressures still exist, not to mention the fact that gasoline prices also tend to rise in the warmer months.
Given all of this, it’s a safe bet that $5 gas won’t be limited to California for much longer.
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