The average price per gallon of unleaded gasoline in the United States rose above $ 5 for the first time today (Saturday), following increased demand from the reopened economy and the shortage of oil, due in part to the war in Ukraine.
According to the American Automobile Association (AAA), the average national price per gallon of gasoline today reached $ 5,004. This is an increase compared to last year, when the price was $ 3.07, and a record price that is not adjusted for inflation. “By my calculations, a typical household spends about $ 160 more on fuel a month than a year ago,” said Mark Zandy, chief economist at Moody’s Analytics. “It’s a big chunk,” he added.
Gasoline prices usually peak in mid-May, but this year they have continued to climb and the average price is about 65 cents higher than last month. Due to limited supply this year, analysts anticipate that prices may continue to climb until mid-July, when the hiking season peaks.
Patrick Daham, head of oil at GasBuddy, said: “I do not think it will overshadow $ 5.50, I would say $ 5.25 will be the peak, but the market is unstable.” However, he said, if there are serious malfunctions at refineries in the summer, or disruptions as a result of hurricanes, gasoline prices could continue to rise.
The U.S. has lost a production capacity of about one million barrels a day since the outbreak of the corona
In Israel, too, the situation is not simple: at the end of May, the Ministry of Energy announced that the maximum price per liter of unleaded 95-octane gasoline per consumer at a self-service station (including VAT) would jump to NIS 7.72 per liter – the highest price in nine years.
The United States has lost production capacity of about one million barrels of gasoline a day since the outbreak of the corona, and sanctions on Russian energy have led to a sharp rise in oil prices – leading to oil and fuel supply problems worldwide.
Analysts argue that while consumers are feeling the weight of the price at gas stations, the price of refueling a car is no longer a big part of household spending as it once was. This is due in part to vehicles, which have become more efficient over time.
According to a CNBC analysis, drivers have spent about 20 cents per mile (1.6 miles) on fuel since June this year, even with the sharp price increases. In 1980, that distance would have cost 30 cents in today’s dollars.