Over the past week, gasoline prices in the United States have increased by 11 percent, skyrocketing to their highest level since 2008. The elevated gas prices emerge as a variety of global sanctions continue hammering Russia’s capacity to export crude oil following the invasion of Ukraine.
According to automobile club AAA, the average gasoline price for the United States hit $4.009 per gallon on Sunday, representing an 11 percent increase from $3.604 a week ago, as well as a 45 percent increase from $2.760 at the same time last year.
Moreover, AAA also observed that the $4.009 average gasoline price is the highest for regular grade gasoline since July 2008, when the crude futures in the United States escalated to a record-breaking $147.27 per barrel.
On a state by state basis, the highest gasoline prices can be found in California, where the average price is $5.288 per gallon.
After California, Hawaii features the most expensive gas at $4.695 per gallon, followed by Nevada and Oregon at $4.526 and $4.466 respectively, per the AAA report.
In addition, GasBuddy, a gasoline price provider, has revealed that the average prices of American gasoline have increased by nearly 41 cents per gallon, sailing past $4 for the first time in nearly fourteen years, and presently standing just 10 cents below the all-time record high of $4.103 per gallon in 2008.
The online gasoline price provider also noted that the weekly increase constitutes the second largest jump in history, surpassed only by the 49 cent jump during the week of September 3, 2005, shortly after the devastating Hurricane Katrina ripped through Gulf Coast states.
Moreover, the total domestic gasoline inventories have decreased by nearly half a million barrels to just 246 million barrels during the week ending February 25. Meanwhile, demand for gasoline has increased to nearly 8.74 million barrels per day, up from 8.66 million barrels per day, as revealed by weekly data from the US Energy Information Administration (EIA).
In a press release, AAA declared that “an increase in gas demand, alongside a reduction in total supply, is contributing to price increases, but increasing oil prices continue to play a leading role in pushing prices higher.”
“Pump prices will likely continue to rise as crude prices continue to climb,” the AAA added.
In the past week, crude futures gained nearly 26 percent, ultimately settling at $115.68, representing the highest close in almost fourteen years.