Soaring diesel prices are not a good sign for US drivers, said Patrick DeHaan, head of oil analysis at GasBuddy.com.
American consumers have been tackling the worst inflation in 40 years, which could lead to more financial distress.
According to a recent analyst at Yardeni Research, it is estimated that the recent surge in gas prices caused by Russia’s invasion of Ukraine could add $ 2,000 a year to the average household. This is in addition to the additional $ 1,000 for food.
Russia invades Ukraine: live update
According to AAA, the average price of a gallon of gas was $ 4.23 nationwide on Thursday, up from $ 2.87 a year ago, but slightly down from last week’s levels. In California, prices can be as high as $ 6 per gallon. Until this month, prices have not exceeded $ 4 a gallon nationwide since 2008.
Soaring gas prices stem from a faster economic recovery than expected from a pandemic. The pandemic has caused the hottest inflation in decades amid strong consumer demand, an influx of government stimulus, and global supply chain turmoil.
Earlier this month, the Ministry of Labor reported that consumer prices rose 7.9% in February. This is the fastest pace since 1982, when inflation reached 8.4%. And that was before the war between Russia and Ukraine hampered access to the world’s energy supply, making world prices even higher.
These states have rolled back the gasoline tax.Others can follow
The international benchmark Brent crude oil was released on Wednesday as the European Union countries considered joining the United States to ban Russia’s oil imports and the negotiations between Russia and Ukraine did not appear to show any signs of success. The barrel has exceeded $ 120.
March 7, 2022, a sign displaying the fuel price of the Shell gas station in San Francisco. The average price of gasoline in the United States has exceeded $ 4 per gallon for the first time since 2008. (Via David Paul Morris / Bloomberg, Getty Images / Getty Images)
Prices, which rise as consumers face the highest inflation in 40 years, have urged lawmakers across the country to look for ways to provide drivers with some relief.
Georgia and Maryland became the first states to suspend fuel taxes last week, with lawmakers from Illinois, Massachusetts, Maine, Michigan, New York, Tennessee, and Virginia considering similar proposals. increase. Congress has called for a suspension of the federal gasoline tax.
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Estimating from the Pennsylvania Budget Model, a nonpartisan group at the University of Pennsylvania’s Wharton School, stopping the federal gas tax of 19 cents per gallon until the end of the year saves just $ 50 for the average driver. About the current gas price.