IARN — For the first time since 2008, the national average price of gasoline has surpassed $4 per gallon.
Reports indicate gas prices across the country have spiked more than 11% over the last seven days. Patrick DeHaan with GasBuddy says the primary reason for the rapid rise in fuel prices is Russia’s invasion of Ukraine.
“Supply as we know has been curtailed by the fact that we have seen sanctions placed on Russia,” said DeHaan early Monday morning. “Russia is getting quite desperate. They are issuing massive discounts on their oil in order to attract buyers. That is not having much impact on who is buying Russian crude oil at this point. Global consumption is nearly 100 million barrels per day. The problem is that Russia is a significant producer of about 10 million barrels per day of oil production. Suddenly, with the loss of Russian oil, the balance has been significantly tipped in a way we have never seen before.”
DeHaan says Americans need to band together to cut the country’s fuel consumption.
“Now is the time to concentrate on what Americans can do, if there is anything,” said DeHaan. “I would encourage motorists to do things that may sound silly in normal times like trying to drive more fuel efficiently, slowing down on the interstate, and go out and check your tire pressure. The simple things are starting to make a profound impact on how many miles you’ll get out of that tank of gasoline. Now with the national average at $4.09, Americans should be doing everything we can to reduce our consumption.”
DeHaan notes gas prices are likely to increase much higher in the coming days and weeks.
Story courtesy of the Iowa Agribusiness Radio Network.
Photo credit: Wikimedia Commons