Fuel prices break $4 a gallon on average in the U.S. for the first time since the 2008 recession.
Russia invaded Ukraine on February 24th. Within a week, the average price of regular gas rose by over 40 cents, according to data collected by the AAA motor club. It’s the second steepest ever jump in average national price. Russia isn’t the only factor – gas prices always increase as spring gets into swing, and inflation is at an all-time high, but the confluence of the three factors is really pushing those prices up fast.
“As Russia’s war on Ukraine continues to evolve and we head into a season where gas prices typically increase, Americans should prepare to pay more for gas than they ever have before,” Patrick De Haan, head of petroleum analysis for price-tracking app GasBuddy, said in a statement.
The previous all-time high for average prices was set in July 17, 2008 at $4.10 per gallon. Today, March 8, 2022, the nationwide average is $4.17 per gallon. 9 states have state averages of over $4.35, and California has the highest at $5.44.
The prices are still rising, with a spike due to this morning’s news that President Biden has ordered a ban on all Russian oil imports, adding that to dozens of other sanctions levied against the country for its unprovoked attack on Ukraine.
Biden acknowledged that Americans would feel the blow at the gas pump, but declared “Defending freedom is going to cost. … We will not be part of subsidizing Putin’s war.” He also urged fuel retailers to limit excessive price increases. In 2008, many states implemented laws to punish gas stations from gouging fuel prices, it’s likely they’ll come into play again.
Russian oil makes up only a small part – between 4 and 8 percent – of U.S. oil imports, but the perception of scarcity does as much to drive up fuel prices as the reality of it.
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