BUSINESS

White House ‘Social Media Summit’: No Facebook, No Twitter, No Transparency CopyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more Twitter to Label Tweets by Leaders Who Break Its RulesRead more Twitter to Label Tweets by Leaders Who Break Its RulesRead more

Gas prices hit new record in US

show caption
A customer uses a credit card before they pump gas at a Mobil gas station on April 28, 2022 in Los Angeles, California./AFP
Print Friendly and PDF

May 11, 2022 - 03:40 AM

WASHINGTON — US gas prices reached a record high Tuesday, as President Joe Biden said fighting inflation is his top domestic priority.

The average price at the pump hit $4.37 per gallon, according to the American Automobile Association (AAA), surpassing the last record of $4.33 set on March 11.

The average price per gallon a year ago was $2.97.

“Gasoline and diesel (hit) a record high today” in data that has not been adjusted to remove inflation effects, said Andy Lipow, an analyst at Lipow Oil Associates.

The cost of gas has been following the global rise in crude oil prices as “the world seeks to find alternative supply to Russian oil,” he said.

Crude prices were already on the up-and-up as inflation hit the economy’s recovery from Covid-19. But prices skyrocketed after Moscow invaded Ukraine in late February, leading many global leaders to impose sanctions on Russia.

“With the cost of oil accounting for more than half of the pump price, more expensive oil means more expensive gasoline,” AAA spokesman Andrew Gross said Monday. The price of oil currently stands at around $100 per barrel.

The record-high prices are upsetting Americans, as they come on top of a general 8.5 percent price increase compared to March 2021.

The public discontent has pushed the Biden administration to try to address inflation.

“Americans have never seen gasoline prices this high, nor have we seen the pace of increases so fast and furious,” said Patrick DeHaan, the head of petroleum analysis at specialist site GasBuddy. “It’s a dire situation and won’t improve any time soon.”

Biden assured Americans Tuesday that his administration was doing everything it could to bring down prices without slowing economic activity.

He recalled that the United States will release one million barrels of oil from emergency reserves per day for the next six months, to offset the surging oil costs.

“Republicans have offered plenty of blame but not a single solution to actually bring down the energy prices,” Biden said Tuesday.

But the White House has not yet opted to suspend the 18-cents-per-gallon federal tax to relieve pump prices.

That would be “the quickest way to give the consumer some price relief,” said Lipow. “But other than that, there are very limited options that the administration can take to increase the supply of oil immediately and temper prices.”

He estimated that gas prices will rise another 10 cents per gallon in the coming days, especially as the United States enters its summer travel season.

“We do anticipate very good demand as Americans take to the road having been stuck at home for most of the last two years,” he said.

LMBCPOLITICS.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.