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Gas prices reached $ 5 nationwide for the first time in over two decades




The national average retail price of regular gasoline reached $ 5 per gallon on Saturday for the first time in over two decades, according to data from AAA.

It is the highest company has seen gas prices rise since they started tracking the data in 2000, and it will probably get worse as oil demand continues to outpace global oil supply, driving barrel prices even higher, said AAA spokesman Devin Gladden.

From Saturday onwards, the prices are at the pump 63 øre higherr than they were a month ago and almost $ 2 more than a year ago, according to AAA data.

GAS PRICES CLIMB 5 CENT OVERNIGHT, US PAYS NEARLY $ 2 MORE FROM JUST ONE YEAR AGO

Gladden noted that the oil price reached 1[ads1]20 dollars per barrel this week, which was also seen that Russia first invaded Ukraine. What followed for a short time was a continuous series of record high gas prices. The oil price is 50% of what consumers pay for at the pump.

Gas prices reached $ 5 nationwide for the first time in over two decades

A customer pumps gas into his car at a gas station on May 18, 2022 in Petaluma, California. ((Photo by Justin Sullivan / Getty Images) / Getty Images)

There are several factors that cause more pain at the pump for drivers: Sanctions imposed on Russia for the invasion of Ukraine; higher fuel demand as drivers “regain travel time” after being limited for the last two years; and the official start of the hurricane season, which could further threaten supplies.

“Even just the threat of a hurricane, which could shut down crude oil production, especially in the Gulf Coast, and which could also lead to rising oil prices,” Gladden said.

If the oil price reaches $ 140 to $ 150 per barrel, “we will see significantly increased gas prices.”

GAS PRICES WILL EXCEED $ 6 NATIONAL BY AUGUST, JPMORGAN SAYS

However, Gladden does not see consumers pumping the brakes despite some people being on guard when prices reached $ 4 per gallon.

Rather, “we see people making different financial decisions,” he said. “So it may not necessarily be reflected in gas use, but they may be eating less out there and spending less dollars on discretionary spending.”

The higher the prices go, the more creative drivers will be how they save money in other areas of their lives, Gladden said.



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