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Oil Chaos: Gas Price Top the Records from 2008
After spiking following the Russian invasion of Ukraine, gas prices have reached a record, overtaking a high that’s been in place for 14 years.
As of Tuesday morning, the national average gas price per gallon reached $4.17, as per AAA. This is the highest price of gas in the history of the U.S., not accounting for inflation. It’s also up from Monday’s $4.07 average and last week’s $3.61.
The previous record was set on July 17, 2008, according to AAA, amounting to $4.11, which is more or less $5.25 today when adjusted for inflation.
The price of diesel is also approaching the record, which was also set in July 2008 at $4.84. Today, the average diesel price is at $4.75, which is over double its cost in October 2020.
One of the main culprits of the rising costs is the currently ongoing conflict between Ukraine and Russia. According to Tom Koza, Oil Price Information Service’s chief global analyst told USA Today that Russia has the distinction of being the second-largest oil producer globally, just behind the U.S.
According to the Associated Press, a barrel of U.S. crude oil is currently priced at $119 per barrel. Meanwhile, Brent crude, the international standard, is priced at $123.21 as of Monday.
Additionally, gas prices will likely only go up in the near future. GasBuddy predicts that prices will likely average $4.25 in May and say above $4 until November.
“Americans have never seen gasoline prices this high, nor have we seen the pace of increases so fast and furious. That combination makes this situation all the more remarkable and intense, with crippling sanctions on Russia curbing their flow of oil, leading to the massive spike in the price of all fuels: gasoline, diesel, jet fuel and more,” GasBuddy head of petroleum analysis at GasBuddy Patrick De Haan, said in a statement Monday.
He also revealed on Twitter that the likelihood of the national average reaching $5 are “somewhat remote” but is still a small possibility.
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