Gas Prices Reached 5 Nationally For The First Time In More Than 2 Decades

The national average retail price for regular gasoline reached $ 5 a gallon on Saturday for the first time in more than two decades, according to AAA data. It is the highest the group has seen gas prices rise since it began monitoring data in 2000 and is likely to worsen as oil demand continues to outperform global oil supply, driving barrel prices even higher. said AAA spokesman Devin Gladden. As of Saturday, pump prices are 63 cents higher than a month ago and almost $ 2 more than a year ago, according to AAA data.
GAS PRICES RISE 5 Cents ONLY NIGHT, AMERICANS PAY ALMOST $ 2 EVEN JUST A YEAR AGO Gladen noted that oil prices reached $ 120 a barrel this week, which also showed that Russia was invading Ukraine for the first time. What followed was a continuous series of record gas prices. The price of oil represents 50% of what consumers pay for the pump. A customer pumps gas in his car at a gas station on May 18, 2022 in Petaluma, California. ((Photo by Justin Sullivan / Getty Images) / Getty Images) There are many factors that cause more pain to drivers: Sanctions imposed on Russia for its invasion of Ukraine. higher fuel demand as drivers ‘recover their travel time’ after restrictions for the last two years. and the official start of the hurricane season, which could further threaten supply. “Even just the threat of a hurricane, which could cut crude production, especially in the Gulf Coast, and that could also cause oil prices to rise,” Gladden said. If the price of oil reaches $ 140 to $ 150 a barrel, “we will see significantly higher gas prices.” GAS PRICES WILL EXCEED 6 DOLLARS ANYWAY BY AUGUST, JPMORGAN SAYS However, Gladden does not see consumers braking despite the fact that some became wary when prices reached $ 4 per gallon. Rather, “we see people making different financial decisions,” he said. “So it may not necessarily be reflected in the use of gas, but it may be that they eat less outside and spend less dollars at a discreet cost.” The higher the prices, the more creative drivers will save money in other areas of their lives, Gladden said.