Gasoline prices approach $4 again, continuing 2-week climb
Average US gas prices continue to recover, rising for the 14th straight day on Saturday, as lingering issues from the war in Ukraine and Hurricane Ian impact supply – and prices higher at the pump could dampen any optimism that inflation is easing.
The average price for a regular gallon of gasoline was $3.80 Saturday, according to AAA, an increase of 13 cents from its eight-month low last week.
Gas is still significantly cheaper than it was earlier this year thanks to 99 straight days of unprecedented price declines, down 26% from its June high of $5.14 after the explosion in energy prices following Russia’s invasion of Ukraine.
Gasoline is most expensive in California, where gasoline costs 6.36 gallons, a hefty increase of 68 cents over the past week, while Nevada ($5.48), Oregon (5 $.41), Washington ($5.28), Alaska ($5.29), and Hawaii ($5.23) are the only other states over $5.
Gas remains the cheapest in the Southeast, and the cheapest gas is found in Mississippi ($3.07), Texas ($3.10), Louisiana ($3.11), and Georgia ($3.07). .18).
The average price of a gallon of gasoline is 19% higher on Saturday than it was a year ago, according to AAA. Gas prices soared between March and June as the cost of crude oil soared in response to the war in Ukraine, quickly surpassing its previous high of $4.11 in 2008. The price spike at the pump helped push inflation to its highest level in the United States in more than 40 years, but inflation did not come down as much as expected, even as gasoline prices fell.
Many expect the Federal Reserve to pursue even more aggressive interest rate hikes to fight inflation, resulting in the stock market’s worst month since March 2020. Several other factors contributing to historic inflation have cooled recently, with the cost of lumber and transportation down more than 70% from their respective peaks earlier in the pandemic.
Inflation is cooling thanks to gas prices, but many things still cost a lot more (NPR)
U.S. gas prices rise for the first time in 100 days (Forbes)