Gas prices have reached an all-time high without instant help

After a short break, gas prices are rising again, returning to the highest levels of all time.

According to the American Automobile Association, the average price of a gallon of gasoline is now $ 4.37, surpassing the previous record set on March 11. Drivers in Michigan, Ohio and New Jersey felt the most pain, where gas prices rose by 19-30 cents per gallon in just one week.

The rise in prices is directly related to the rise in oil prices, which are approaching $ 110 per barrel, which in itself is higher after the Great Recession.

“Because oil costs more than half the price of a pump, more expensive oil means more expensive gasoline,” said AAA spokesman Andrew Gross. “These prices are closer to the record high of early March.”

The rise in oil prices, in turn, is due to the war in Ukraine and Western sanctions against Russia, according to GasBuddy, which tracks the cost of fuel throughout the country.

From here, things get trickier, and this is where the true sights of summer come in, Gross said.

“Russian oil is falling out of the market, reducing supply, while demand is recovering ahead of the summer driving season,” said Patrick De Haan, head of oil analysis at GasBuddy.

“There is little good news about fuel prices going up in the summer, if there are any,” he continued. we have a lot. “Stocks of processed goods continue to decline.”

On April 5, 2022, a woman poured gas into her car at Vantage Station in New York State.Steve Pfost / Newsday RM via Getty Images file

Further contributing factor. Domestic production stalled as oil companies sought to return more money to investors after suffering heavy losses during the epidemic. It has become a point of political outburst as Democrats convene hearings, accusing oil companies of sitting idly by.

Chevron CEO Michael Wirth replied that oil is a world market.

“We do not control the market price of crude oil or natural gas, nor refined products such as gasoline and diesel fuel, we do not tolerate rising prices,” he said during a congressional hearing in April.

Rising prices are likely to increase pressure on the Biden administration to act. even when it seeks to meet long-term climate goals. In April, President Joe Biden announced plans to boost production and sales of ethanol-mixed gasoline to boost prices. Biden is scheduled to speak later on Tuesday refer to inflation.

The Bureau of Labor Statistics is going to publish the latest inflation data on Wednesday. The increase in the current price of gas will not be reflected, or it may be revealed during next month’s readings.

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