Gas prices rose by an average of 15.8 cents a gallon on Friday across the U.S. and were up another 8 cents on Saturday – as the cost at the pump increased 33 cents over the last week.
It was the second highest spike in gasoline prices ever recorded and beaten only by the 18.1-cent spike when Hurricane Katrina tore through Gulf in August 2005.
This time, Russia’s war in Ukraine is having a dramatic impact on the cost of crude oil which sits at $114 a barrel. This, coupled with rising inflation at home of 7.5 percent, are the main culprits why drivers are spending more than $100 to fill up on full tank of regular unleaded gas in nearly a third of the country.
Gas prices have risen by 37 cents since Russia invaded its neighbor.
There are now eleven states – California, Hawaii, Nevada, Oregon, Washington, Alaska, Illinois, Arizona, New York, Connecticut and Pennsylvania – where the average price is already over $4 a gallon. Another six states have average gas prices hovering near $4 a gallon.
Those filling up their cars on Friday winced at the spiraling costs.
California drivers are paying an average of more than $5 for a gallon ($1.34 per liter), according to the American Automobile Association (AAA), up more than a third from a year ago.
‘It’s going to affect the prices,’ resident Mike Hernandez said, referring to the conflict in eastern Europe. ‘I’m not really into politics or anything like that, but now that this thing is going on between Russia and Ukraine, it’s just that sad.’
Russian President Vladimir Putin’s invasion of neighboring Ukraine has sent financial markets into meltdown.
Prices for crude oil, the raw material for gasoline, have been hit hard, and are up well above $110 a barrel, with players fretting about the impact on Russian supplies, as sanctions choke Moscow off from the global economy.
The average price of gas a year ago was $2.75 a gallon. Prices were recovering from the pandemic when stay-at-home orders and business shutdowns slashed demand for gasoline.
A lack of supply resulted in a gas shortage last summer, sending U.S. gas prices to a seven-year high.
‘This is not the end of it. We’re already up another 14 cents on wholesale gas prices this morning,’ said Tom Kloza, global head of energy analysis for OPIS to CNN.
‘It’s absolutely out of control. When you get increases this quick, and this dramatic, you really scald the public,’ he said.
While all countries have access to the same gasoline, subsidies or taxes imposed locally mean the ultimate cost to consumers varies wildly.
For example, in oil-producing Nigeria, which subsidizes fuel, the official price is 40 US cents per liter.
In Hong Kong, drivers were already paying US$2.50 per liter in 2021, according to the Economist Intelligence Unit.
On average, Americans pay around $1 per liter, according to the AAA, and even California’s $1.34 per liter is well below the prices paid by Europeans.
‘It’s expensive but it’s always been more expensive here in California, so I guess we’re used to it,’ said Harry Lee, as he fueled up on the way to work in Los Angeles on Friday. ‘I’ll be happy when it goes down but so far it doesn’t impact me too much,’ he added.
‘My cousin, who drives for Uber here in LA, is complaining a lot though. I guess it can be hard on him if gas remains at this level for too long.’
California’s relatively high gas prices are the result of state taxes, as well as stricter refining rules that require specific fuel formulae intended to reduce air pollution in the hot summer months.
While many drivers have grumbled about seeing pump prices rise almost daily, some say they are prepared to put up with the extra cost because of the pictures of the war in Ukraine they are seeing on the news.
‘I would rather have high gas prices here than an authoritarian regime in the Ukraine,’ said Los Angeles resident Jacqueline St-Anne.
‘If we have to suffer with a little bit of inflation and gas prices for a while to assure that such a wonderful country as Ukraine has an opportunity to develop its democracy, we should do that.’
For others, there is a simple solution to paying through the nose.
‘I just bought a Tesla,’ said Matthew Reynl, speaking about the electric car. ‘That’s my solution to the gas prices going up.’