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The national average retail price of regular gasoline reached $ 5 per gallon on Saturday for the first time in more than two decades, according to AAA data.
It is the highest the group has seen rising gas prices since it began tracking data in 2000, and is likely to worsen as oil demand continues to outpace global oil supply. , making barrel prices even higher, AAA spokesman Devin Gladden said.
As of Saturday, prices at the pump are 63 cents higher than a month ago and nearly $ 2 more than a year ago, according to AAA data.
GASOLINE PRICES RISE 5 CENTS OVERNIGHT, AMERICANS PAY $ 2 MORE GAPES FOR ONLY ONE YEAR
Gladden noted that oil prices hit $ 120 a barrel this week, which also saw Russia invade Ukraine for the first time. What followed shortly was a continuous gust of record gas prices. The price of oil represents 50% of what consumers pay at the pump.
A customer pumped gasoline into his car at a gas station on May 18, 2022 in Petaluma, California. ((Photo by Justin Sullivan / Getty Images) / Getty Images)
There are multiple factors that are causing drivers more bomb pain: sanctions imposed on Russia for its invasion of Ukraine; increased fuel demand, as drivers are “recovering their travel time” after being restricted for the past two years; and the official start of the hurricane season, which could further threaten supply.
“Even just the threat of a hurricane, which can shut down crude production, especially on the Gulf Coast, and that can also cause oil prices to rise,” Gladden said.
If the price of oil reaches between $ 140 and $ 150 a barrel, “we will see a significant increase in gas prices.”
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Gladden, however, does not see consumers holding back even though some were wary when prices reached $ 4 a gallon.
Rather, “we’re seeing people make different economic decisions,” he said. “So it may not necessarily reflect the use of gas, but they may eat less outside and spend less dollars on discretionary spending.”
The higher the prices, the more “creative drivers will be how they save money” in other areas of their lives, Gladden said.