Gasoline in the US sells for more than $4 per gallon for the second day in a row

The war between Russia and Ukraine has greatly affected the rise in gasoline prices in the United States. Fuel has reached unprecedented prices and is expected to continue rising to more than $4.50 per gallon.

As predicted, US prices rose to record highs, with the AAA reporting Tuesday that the national average for a gallon of regular gasoline was $4.17, up from a 2008 peak of $4.11 a gallon. 

By how much did the amount of gasoline increase?

The price of a tank on Tuesday represents an overnight increase of 10 cents per gallon, up 55 cents from a week ago and $1.40 more than drivers were paying at the same time last year.

The sharp rise followed the Russian invasion of Ukraine, when the average cost of gasoline rose by 63 cents since February 24, when a full-scale military offensive began. But even beyond the geopolitical realm, growing demand and other factors are driving it even further, experts say.

How much will petrol prices rise?

Gas station prices on Tuesday averaged nearly $4.17 a gallon, a national record: If you fill up a typical 15-gallon gas tank once a week, that's over $250 a month. And don't expect the price to stop rising: In California, gas is already averaging $5.44 a gallon, up 10 cents a day, and above the national average in at least 18 other states. 

The next threshold that analysts are following is $4.50 a gallon.

However, gasoline prices tend to rise in the spring as refineries undergo maintenance ahead of the summer driving season, but the war in Ukraine is exacerbating the situation. 

"As Russia's war against Ukraine continues to escalate and we head into a season where gas prices tend to rise, Americans should be prepared to pay more for gas than ever before," said Patrick DeHaan, head of oil analysis at the GasBuddy price tracking system. the announcement on Saturday, when prices first crossed the $4 threshold. 

Why are gas prices rising?

“The invasion of Russia and the escalation of financial sanctions by the United States and its allies in response has stymied the global oil market,” AAA spokesman Andrew Gross said last week. Rising gasoline prices are "a grim reminder that events on the other side of the world can have a ripple effect on American consumers," Gross added.

But while the crisis in Ukraine has a direct impact, Vincent said it's not the only factor. “For some time we had an imbalance of supply and demand, and it will continue regardless of whether this conflict disappears,” he said. 

As with all industries, the pandemic has caused staffing problems at refineries. There were power outages, including a fire at the Marathon Petroleum plant in Louisiana. A colder winter in North America has also boosted demand for fuel oil, and pandemic-driven online shopping has taxed the diesel fuel that powers all those trucks.

How can consumers save money at filling stations?

There's little we can do to change the price of gas, but drivers can cut back on non-essential trips and look for the best price, even crossing state lines if it's not inconvenient. 

Apps like Gas Guru look for the best gas prices in your area. Others, like FuelLog, track your car's fuel consumption and can help determine if you're getting decent fuel economy. In addition, many gas station chains have loyalty programs and credit cards have rewards programs that give you cash back on gas purchases.

DTN's Vincent advises against stockpiling gasoline or taking other extreme measures, but encourages allocating more gasoline to the budget. According to him, high energy prices have been one of the main drivers of inflation for some time now, and they will not disappear immediately. 

“When the cost of oil rises, gas station prices tend to reflect that very quickly,” he said. "But gasoline prices tend to stay higher even when oil prices fall."

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