U.S. gas prices are rising at a record pace as sanctions placed on Russia have threatened the global oil markets and refineries are struggling to keep up with demand.
The average price per gallon of unleaded gasoline jumped to $3.92 Saturday, according to AAA. A week ago, drivers paid about 36 cents less on average per gallon. One month ago, drivers paid about 49 cents less on average per gallon, and one year ago, they paid $1.17 less.(RELATED: ‘We Need To Be Honest’: Biden Suggests US Gas Prices Will Increase Because Of His Russian Sanctions)
And don’t forget the gas prices! https://t.co/e1tDhD07dN pic.twitter.com/KgqMoJrb8A
— Dave Rubin (@RubinReport) March 5, 2022
The last time the national average for a gallon of gas reached $4 was in 2008 when it cost $4.11 per gallon, according to AAA data.
The Brent crude index, the global oil benchmark, hit $103.08 per barrel on Monday, surging more than 4% over the weekend.
As diesel prices escalate, the cost of shipping goods will disrupt supply chains.
“I think people are going to have sticker shock,” AAA spokesperson David Gladden told The Washington Post. “Even if they can purchase more because wages have increased, you also have to think about how the pandemic for a lot of families has made them more fragile than they ever have been. There’s a lot of social challenges at the moment that are compounded by higher prices.”
In response to Russia invading the Ukraine, many oil companies including BP, Shell, and ExxonMobile said they would stop doing business with Russia, amounting to billions of dollars in investments removed from the industry.