The average price of regular gasoline in the United States has climbed 79 cents over the past two weeks to a record $4.43 per gallon (3.8 liters), as the invasion of Ukraine by Russia is contributing to already high prices at the pump.
Industry analyst Trilby Lundberg of the Lundberg Survey said on Sunday that the new price was 32 cents above the previous high of $4.11 set in July 2008.
In today’s dollars, the previous record would equal $5.30 per gallon, according to the US Bureau of Labor Statistics’ inflation calculator.
The price at the pump is $1.54 higher than it was a year ago.
Lundberg said gas prices are expected to remain high in the near term as crude oil prices soar amid global supply issues following Russia’s invasion of Ukraine.
Pump prices were rising long before Russia invaded Ukraine, as post-lockdown demand drove prices up. Crude prices fell in early 2020 as economies around the world shut down due to COVID-19 – the price of futures even turned negative, meaning some sellers were paying buyers to take oil. However, prices rebounded as demand picked up faster than producers got oil out of the ground and inventories dried up.
Then, the rise in prices accelerated after the start of the war.
Energy prices are also contributing to the worst inflation Americans have seen in 40 years, far outpacing higher wages.
Nationally, the highest average price for regular gas is in the San Francisco Bay Area at $5.79 per gallon. The lowest average is in Tulsa, Oklahoma at $3.80 per gallon.
According to the survey, the average diesel price also rose $1.18 over two weeks to $5.20 per gallon. Diesel is $2.11 more than a year ago.
This story has been corrected to show that the inflation-adjusted dollar figure was from the US Bureau of Labor Statistics, not Lundberg, and updates that figure from $5.24 to $5.30.